South West
Mar - Apr 2020
Living the Good life The Duke of Richmond talks cars, business, sustainability and ‘perfection’ at the Goodwood Estate.
Productivity crisis: Is the UK’s ‘lost decade’ at an end? Page 37
How have mixed-use developments changed UK cities? Page 44
What does the rise of the robot mean for UK jobs? Page 64
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IN THIS ISSUE
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Contents IN THIS EDITION 2
Latest news Breaking business news from around the region and UK.
10 Cover story: Duke of Richmond Business Leader sits down with His Grace to discuss cars, business, sustainability and 'perfection' at the Goodwood Estate.
FINANCE 16 Review: Funding growth What are the best funding options for South West businesses that are scaling up?
GROWTH
BUSINESS LEADER VISION: INSPIRE 34 Report: International trade How to launch your business in Japan. 37 Feature: Productivity Is the UK's 'lost decade' of stagnant productivity at an end?
PROPERTY 44 Feature: Mixed-use development BLM investigates how mixed-use developments have changed UK cities. 48 Debate: Future of construction Who is going to be the Elon Musk or Jeff Bezos that disrupts the construction sector?
22 Debate: Automotive industry BLM partners with Barclays Corporate Banking for roundtable debate on the industry's future.
LEADERSHIP
26 Review: Business incubators How are they evolving? And what support do they offer businesses and entrepreneurs?
58 Interview: CEO in Focus BLM talks to Judith Totten of Upstream Working Capital about her business journey.
Business Leader - Inspire • Inform • Connect
64 INFORM
CONNECT
HR 60 Review: Immigration Immigration law changes, why getting it right is 'critical for economic growth'. 64 Feature: Future of work What does the rise of the robot mean for UK jobs?
REGIONAL SPOTLIGHT 68 Feature: Bath A 'global brand which gives any business instant recognition'.
52 Feature: Tech entrepreneurs Who are the 32 tech leaders shaping the South West?
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LATEST NEWS
Inspire • Inform • Connect EDITORIAL Simon Angear - Editor E: simon.angear@businessleader.co.uk Barney Cotton - Digital Editor E: barney.cotton@businessleader.co.uk DESIGN/PRODUCTION Adam Whittaker - Senior Designer E: adam.whittaker@businessleader.co.uk
Entries now open for South West Business Leader Awards 2020
Melissa Larkin - Website Development E: melissa.larkin@businessleader.co.uk Ben Matthews - Digital Communications E: ben.matthews@businessleader.co.uk SALES Sam Clark - Business Development Manager E: sam.clark@businessleader.co.uk
Entries for the 2020 South West Business Leader Awards are now open – with the hotly-anticipated event set to take place at Ashton Gate on September 24.
Emma Filby - Business Development Manager E: emma.filby@businessleader.co.uk CIRCULATION Adrian Warburton - Circulation Manager E: adrian.warburton@businessleader.co.uk
The South West Business Leader Awards are the leading annual celebration of innovation, excellence and success within the region.
ACCOUNTS Jo Meredith - Finance Manager E: joanne.meredith@businessleader.co.uk DIRECTORS Oli Ballard - Publishing Director E: oli.ballard@businessleader.co.uk Andrew Scott - Managing Director E: andrew@businessleader.co.uk No part of Business Leader Magazine may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without the prior written consent of the editor. Business Leader magazine will make every effort to return picture material, but this is at the owner’s risk. Due to the nature of the print process, images can be subject to colour variation of up to 15%, therefore Business Leader Magazine cannot be held responsible for such variations.
If you would like to get involved or have any news you would like to share, please contact us on 020 3096 0020 or email: editor@businessleader.co.uk. Follow us on social media
The event’s 18 categories showcase businesses which excel in areas like innovation, community and environmental impact, tech, start-up, growth and more. Winners in 2019 were drawn from a wide variety of sectors, including law, manufacturing, training, tech, logistics, property, retail and service industries. Success in these awards – now in their 8th year – can help grow a company brand, and offer a high-profile showcase for its achievements, as well as delivering a night to remember for shortlisted firms in the company of regional leaders in enterprise and politics.
Business Leader Awards founder Andrew Scott said: “Last year’s Business Leader Awards night was an incredible celebration of this region’s leading companies, entrepreneurs and trailblazing personalities – and I expect the 2020 version to be the best event we have ever put on. “BLA20 is now open for entries – good luck to all entrants.” The 2019 event saw a record number of entries, meaning the prestige which comes from securing a coveted Business Leader Award trophy is growing every year. However, it remains free to submit an entry, and businesses can enter as many categories as they like, with all entries facing scrutiny from a panel of renowned panel of judges from across the business community. Find out more about the award categories, how to enter, and detailed of the limited remaining sponsorship opportunities at www.blawards.co.uk
Cook Corporate acts on acquisition of commercial installation company Cook Corporate Solicitors has acted for the commercial refurbishment and relocations business Durabilis Limited, which has acquired Southampton-based Regal Building Services Limited. The strategic acquisition will allow Durabilis to further expand its client 2
offering into electrical installations, testing and buildings maintenance. Charles Cook, Managing Partner of Cook Corporate Solicitors, said:“We were delighted to act on this acquisition, which will see significant growth for our client." March - April 2020
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LATEST NEWS
'Today’s giants and tomorrow’s unicorns' set for 635-acre Somerset campus
Inspire launches new Virtual Board service South West business support service Inspire has launched its Virtual Board service to members.
A 635-acre tech campus will be developed on brownfield land in Somerset – a development which is being heralded as a blueprint for future smart and clean campuses. Gravity will become home to responsible and fast-growing companies associated with manufacturing, robotics, artificial intelligence, electric vehicles, R&D, offices, assembly and distribution space. Landowner This Is Gravity Ltd, says the campus aims to accelerate the UK’s clean growth agenda.
The firm has appointed JLL as sole agent for the site, which is now under development, with the remit to ‘bring the world’s most innovative companies and the UK’s future unicorns’ to Gravity. Tom Curtis, Co-CEO of Gravity, said: “At Gravity, we are committed to creating a connected and sustainable mixed-use smart campus which will attract some of the world’s most innovative and forward-thinking companies. Among many other attributes, JLL’s commitment to sustainability ensures they are the perfect fit for this scheme.”
The new service is aimed specifically at SMEs who are at a stage in their growth where access to a carefully selected group of high-profile mentors and Non-Executive Directors (NEDs) would be of value. Rob Perks, Inspire’s CEO, explains: “Our Inspired Board is made up of a dynamic group of 18 NEDs that have experience in growing businesses at senior corporate level and scaling their own businesses, and they cover a broad range of skills. We will identify which of them will match the skillset and experience our members are looking for and bring them to the table at an affordable cost.” The board will provide an exploratory initial face-to-face meeting, quarterly virtual board meetings of up to two hours each and phone contact between meetings.
Western Gateway to boost region by £56bn A new economic partnership for the South West and South Wales is targeting innovation to help deliver a £56bn boost to the region’s economy by 2030. The Western Gateway project unites key cities and a host of rural communities across the wider economic area, and will become the UK’s third powerhouse region after the Northern Powerhouse and Midlands Engine. Its ambition is to further stimulate the area’s economy through investment, connectivity and innovation to create a net-zero future. 4
Chairman Katherine Bennett said: “Whilst we are an economic high performer, we are also a region of contrasts, with significant pockets of deprivation, low skills and low pay in some of our cities and rural areas. Through harnessing the Western Gateway’s innovation and geographical assets, we can make a huge difference to people’s lives.” Cities and towns embracing the project include Bristol, Bath, Swindon, Cheltenham, Gloucester, Weston-superMare and Salisbury in England, and Cardiff, Newport and Swansea in Wales. March - April 2020
LATEST NEWS
£100m Bristol sports campus to 'bring significant spend' to the city A move to unite three major Bristol sporting brands in a £100m sports and convention centre campus moved a step closer with the unveiling of the scheme’s updated blueprints. Ashton Gate is already home to Bristol City Football Club and Bristol Bears rugby club, but moves are underway to bring Bristol Flyers basketball team into the fold in a new development alongside the stadium. Plans include a 4,000-seater arena which would become a permanent home for the Flyers, but which would also be capable of hosting music and theatre events, major conferences and more. All of this will be supplemented by supporting development including a 230-room hotel, gym, shop, museum and housing, with plenty of open space for fan zones and other events – all of which is predicted to have a positive economic ripple effect across the whole city. Ashton Gate Chairman Martin Griffiths said: “The reaction and
interaction that we’ve had has been really positive and has brought us to the designs we are showing today. There is now more open space and public realm areas along with a reduction in the height of the tallest buildings. We think that these latest designs are a great step forward.”
Anaphite receives £425k investment from local entrepreneurs a total of £222,000 into Anaphite, based in Unit DX in St Philip’s, as part of a total fundraising package of £425,000 by the business. Anaphite was founded to look at ways to exploit the potential of graphene by Sam Burrow and Alexander Hewitt after they left university.
(L-R) Samuel Burrow and Alexander Hewitt
A group of 22 Bristol-based entrepreneurs have invested their money in a growing business that is looking at new ways of using advanced materials, including the development of an 'electronic nose'. The group, all members of Bristol Private Equity Club, have invested
Their impressive work so far in the Unit DX incubation space has also attracted grants totalling over £500,000 over the last year from Innovate UK.
CEO Alexander Hewitt said: “The fact that people with a wealth of diverse business experience believe we can succeed, makes us excited and optimistic about the future. They see the scalability of the business and the potential impact it can have.”
Business Leader - Inspire • Inform • Connect
WECA invests £5m to kick-start revolution in digital engineering Plans to revolutionise the South West’s advanced digital engineering sector have been kick-started by the West of England Combined Authority (WECA). WECA awarded £5m to the new Centre for Digital Engineering Technology & Innovation (DETI) – to match-fund £5m from West of England businesses who are at the forefront of industry. WECA Mayor Tim Bowles said: “Our region is a global leader in high-value design and innovation, and we want to make sure we retain that position in the face of global competition. DETI will help us do that by putting the West of England at the forefront of the fourth industrial revolution.” 5
LATEST NEWS
Bristol Airport expansion plan blocked
America Made Easy? New podcast helps SMEs streamline US expansion to consider how best to route their US expansion and seek help along the way.
Podcast Host and Newable Avitus Business Development Director Morgan Pierstorff
Proposals to expand Bristol Airport – a project predicted to grow the South West economy by £1.4bn over the next decade – have been refused. Airport bosses want to extend the site’s passenger terminus and plane taxiways as current facilities will hit maximum capacity by 2021. The extension would enable passenger numbers to grow from 10 million a year to 12 million, while also creating hundreds of new jobs for the area. However, the idea provoked public protests from nearby residents and environmental pressure groups – leading North Somerset Council to refuse the application. Council Leader Don Davies said: “I know some people will be upset by this decision and I am sure we can reconsider it in future when the airline industry has decarbonised and the public transport links to the airport are far stronger.” The decision must still be ratified by a further council committee, and could yet be challenged on appeal – not least because the refusal goes against the recommendation of the authority’s own planning experts. The government could also intervene to make the final decision. However, the business community has reacted with disappointment to the refusal. Confederation of British Industry (CBI) Deputy Regional Director Ben Rhodes said: “This news is a real blow. This project would help further extend the reach of our region and help put us in the shop window of the world. “Simply put, this project would help create jobs, growth and investment in the South West.” 6
Opportunities abound for ambitious British businesses eyeing a US expansion. America is the largest consumer market in the world with over 265 million consumers. Its £16.8tn economy accounts for a quarter of the world’s GDP and is eight times larger than the UK (even California’s economy is bigger). Much has been written about the ‘special relationship’ between the UK and the US, but any UK company that’s tackled the American market will tell you there are plenty of obstacles along the way. With scale comes complexity and America is far more complex from a regulatory, tax and even cultural perspective than most UK business owners realise. Rather than learning the hard way, UK SMEs would be wise
The America Made Easy Podcast helps SMEs tackle the complexity of setting up and growing their business in the American market. In season one, the podcast, produced by the transatlantic joint venture Newable Avitus, will be exploring the operational elements of scaling your business in the American market, speaking with experts on topics ranging from culture to tax to talent as it seeks to help SMEs map and execute a successful US expansion strategy. If you are leading or are part of a team responsible for executing a US expansion, regardless of whether you are at square one or have been in the US market for years… if you have wished you could test your business in the US market before fully investing, the America Made Easy Podcast can help you streamline your operations and growth. For more information and to subscribe to ensure you never miss an episode, visit: https:// newable.co.uk/advice/americamade-easy/
Work begins on latest Exeter Science Park expansion Work has begun on a new 20,000 sq ft office and laboratory space at Exeter Science Park (ESP). The Ada Lovelace Building is named after the 19th century mathematician and is being built by Midas Construction. The speculative office and laboratory space has been designed specifically for science, technology, engineering, maths and medical (STEMM) businesses and its internal spaces can be configured to suit tenants’ requirements. Workspaces ranging from 1,500-6,000 sq ft are available on each of three floors. Dr Sally Basker, CEO of ESP, said: “Our mission is to help innovative STEMM companies to deliver extraordinary growth and the Ada Lovelace Building will be the prime location for knowledge-based companies looking to relocate and grow.” March - April 2020
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LATEST NEWS
Zeetta Networks leads £9m 5G Manufacturing Project Zeetta Networks has been revealed as the consortium lead for a £9m Department of Culture, Media and Sport (DCMS) project to deliver clear business cases and value propositions for 5G application for the manufacturing industry. This is the UK government’s biggest investment in 5G for manufacturing to date. Other consortia members include the National Composites Centre, Telefonica, Siemens, Toshiba, Solvay, Baker Hughes, Plataine, Mativision, University of Bristol and the West of England Combined Authority. The project aims to deliver real-life impact as early as September 2020, and will continue until March 2022 when similar commercial 5G deployments are expected across a variety of manufacturing hubs in the UK. Vassilis Seferidis, CEO of Zeetta Networks, commented: “Zeetta is proud to be leading the 5G-ENCODE project on behalf of a consortium of such renowned industrial innovators. The technology will be applied across public and private networks for seamless and customised delivery of 5G services.”
Osborne Clarke advises Equitix on £159m York Uni loan
Finzels Reach's Fermentation Buildings sold to Mendip District Council
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Bristol-based developer Cubex, together with funding partner Fiera Real Estate, has sold Finzels Reach's Fermentation Buildings to Mendip District Council for £11.9m.
which runs through the heart of Finzels Reach, is now home to Bocabar's new restaurant and bar and wine lounge and shop Le Vignoble.
The newly-renovated office space at the Fermentation Buildings, part of the rich brewing history at Finzels Reach, is let to high-profile organisations Channel 4, Historic England, English Heritage, Outlaw and Ecosurety. The ground floor leisure space along Hawkins Lane,
Peter Walford, director at Cubex, said: "This sale marks an important milestone for us in our journey to transform this once derelict city centre site into a vibrant new quarter providing high quality, unique places for people to live, work and socialise.”
Lawyers at international legal practice Osborne Clarke in Bristol have advised Equitix, the investor, developer and long-term fund manager, on a £159m loan to finance the development of high-specification student living and communal space at the University of York’s Heslington East campus. The loan will finance the development of two new accommodation blocks creating 1,480 new bedspaces for students. The halls will house students in en-suite rooms. The Osborne Clarke team was led by Bristolbased Partner Chris Wade, supported by David Smith, Amy Dimond, Leanne Hooper, Grace Hodgkinson, Jasdeep Puri, Andy Normington, Jonathan Culley, Sarah Knight, Jonny Gait and Kristen Harris. March - April 2020
LATEST NEWS
New Chairman for Women in Property South West
Women in Property has announced its incoming SouthWest Branch Chairman 2020/21. Rachael Sherratt of JLL has taken the regional role for the national property and construction industry lobbying and networking organisation for one year. Sherratt has been on the Women in Property committee in Bristol for four years and is looking forward to taking over the reins of the busy regional branch, which hosts over 100 events and initiatives per year. An Associate in the project management team of real estate consultancy JLL, Sherratt manages the delivery of a number of high-profile office, build-to-rent and regeneration schemes in the South West, including the successful Finzels Reach development for Cubex Land. Sherratt commented: “I am delighted to take on the role of Chairman for 2020. This year, we want to build on our profile, working alongside other organisations to highlight the benefits of diversity to the wider industry. Women in Property provides our members with a voice and the power to influence change and I will be working to ensure we utilise that voice wherever possible.”
Work begins on £9m construction skills training centre A £9m training centre for the construction industry has begun to take shape, after City of Bristol College broke ground on the new development last month.
The state-of-the-art centre is designed to meet the needs of the construction sector by delivering apprenticeships and training courses in trades like wood, brick and plaster.
The Advanced Construction Skills Centre will become part of the college’s South Bristol Skills Academy, and is expected to be up and running by September 2021.
The aim is not only to help produce a pipeline of young talent for the sector, but also help upskill professionals already working in the field.
Midas Construction began work on the project recently, following a turf-cutting ceremony attended by college leaders and major South West figures from industry and politics.
West of England Mayor Tim Bowles said: “Construction is one of our region’s anchor sectors and we need to provide the new skills to help the industry grow in the future.”
Amdaris opens new office at €442m Romanian development Bristol-based software engineering firm Amdaris has revealed plans to open a new 100-strong office at one of Europe’s top tech workspaces. Amdaris has enjoyed rapid growth, and that is set to continue with its expansion into Timișoara in Romania, where it will open a state-of-the-art facility in a new €442m mixed-use development. Founded in Bristol in 2009, Amdaris has since established offices in Dubai and Moldova, as well as Romania. The expansion has enabled it to grow swiftly as a software development and Business Leader - Inspire • Inform • Connect
managed services provider of choice for clients across Europe and the Middle East. Amdaris co-CEO Andy Rogers said: “In the past 12 months, the Timișoara Centre headcount has grown from 30 to over 60, even though competition for development talent in Romania is intense. Maintaining that level of growth requires having a well-known brand and a reputation for caring for our employees. The new Iulius Town location accomplishes both goals. It is a high-profile location, and we believe it is the best office in the entire complex.”
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COVER STORY
"WE’RE NOT CHANGING THE WORLD, BUT WE’RE DOING THINGS THAT MOVE PEOPLE AND BRING PEOPLE TOGETHER. IF WE CAN HAVE AN IMPACT ON PEOPLE IN THIS WAY, THAT MAKES IT ALL WORTHWHILE." 10
March - April 2020
DUKE OF RICHMOND
LIVING THE GOOD LIFE G
oodwood is a name synonymous with luxury, hospitality and sport, hosting key dates in the horse and motor racing calendar and describing itself as ‘an English estate like no other’.
The contemporary 12,000-acre estate is home to 29 disparate businesses – ranging from organic farming to its famous Festival of Speed – and turns over around £100m a year. At its head is Charles Gordon Lennox, the 11th Duke of Richmond and Gordon, and a direct descendant of Charles II. Business Leader Magazine sat down with His Grace to discuss Goodwood’s ceaseless quest for ‘perfection’, and why his ancestors would think the modern estate ‘absolutely bonkers’…
THE HISTORY OF THE GOODWOOD ESTATE IS WELL DOCUMENTED, BUT HOW WOULD YOU DESCRIBE THE MODERN ESTATE AND ITS ACTIVITIES? Goodwood is a traditional estate, and we still have traditional estate activities at its core – property, forestry, farming – but its main area of differentiation over the past 300 years has been sport, in a very personal way. Various members of the family indulged their sporting passions, but what’s unusual is this involved sharing that passion with other people. The whole nature of the place is about shared experience, and that runs through everything we do. My dream 25 years ago – and still the same goal – was to be the world’s greatest luxury experience company. It sounds a bit unreal now, but it’s what we try to do, and we’re lucky in a sense that the experiential world has absolutely blossomed in that time. But the point of making it a success is to create a sustainable business, to create enough resource to be able to invest and support the estate. If that goes because we are so focused on other business, then we’ve lost the plot. If the family has to move out of the house and turn it into a conference centre, that would be pretty disappointing. Cont. Business Leader - Inspire • Inform • Connect
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COVER STORY
YOU CREDIT YOUR FATHER FOR LAYING THE FOUNDATIONS FOR MUCH OF THE MODERN BUSINESS. IN WHICH AREAS CAN HIS INFLUENCE STILL BE FELT? In 1967, when he and my mother came here, I was 12, and no-one really had been living in the house since the war. These places were considered irrelevant. Something like 1,000 houses a year were knocked down. No-one had any money, no-one wanted to keep them up, and even when people could afford to, it wasn’t considered politically the thing to do; the world had moved on.
Goodwood Revival
"SUCCESSION IS IMPORTANT IN BUSINESS, BUT IT’S VITAL IN THIS INSTANCE – IF YOU DON’T GET THE SUCCESSION RIGHT, THE WHOLE THING IS LOST." Sir Jackie Stewart taking part in the 2019 Revival Goodwood Racecourse
But the family had been here for 300 years, and my father was determined to keep it going. He was business trained, so he was good with numbers and the banks, which was important as we had to borrow money. And he was very, very good at putting groups of people together to get things done. These days people are much more embracing and most people are pretty positive about what goes on here; we’re doing things people want to be part of, we’re maintaining authenticity and heritage, and nowadays that’s considered to be important. And having the families and owners living in these houses and worrying about them is by far the most cost-efficient way of keeping them going. WERE YOU PREPARED FROM AN EARLY AGE TO TAKE OVER? I was involved in film and photography from the age of 16. I didn’t really love school, and I left very early. I was meant to still be in school but I wasn’t, I had got a job in London, which I loved. The idea of succession had always been managed. My father always made it clear that he wasn’t going to go on very long. So I felt good about it actually. SO THERE WAS NEVER ANY QUESTION IN YOUR MIND THAT YOU WOULD TAKE OVER? No question. I could have said no – that would have been difficult – but you have responsibilities. Succession is important in business, but it’s vital in this instance – if you don’t get the succession right, the whole thing is lost. The chances of survival are quite small really, because only one person has got to screw up and it’s all over.
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March - April 2020
DUKE OF RICHMOND
My father was only encouraging. We had the idea for the Festival of Speed, for instance, and I remember saying ‘look, I have this idea, it’s not going to cost us much, I think we can spend £100,000 on it’, and he was always saying ‘let’s do it, it’s a great idea’. He was always very positive, and that is a fantastic legacy. TO WHAT EXTENT HAS THE CONTEMPORARY ESTATE EVOLVED AS A DIRECT RESULT OF YOUR OWN PASSIONS AND AMBITIONS? I guess it’s evolved massively – but evolved is a good word to use, because we’ve tried to do everything that’s authentic to the place.
relevant to the modern world – and I hope we do. TO WHAT EXTENT DO YOU SET THE STANDARD? I’m very involved. This morning, for instance, we had a three-hour meeting, all on motorsport, to go through details. We went through what the new catering facilities might look like this year, and some sponsors want to do different things, so we’re looking at drawings to see how that might look. How the brand feels and how it all fits together, I’m very involved.
We’re lucky in that cars were easy for me, because I love them, so that was an easy door to push on. The first thing I did when I got here was to look at whether we could reopen the racetrack – it hadn’t been touched since 1966, and it was a big project. We had the idea of the Festival of Speed, but it was a small deal compared to what it is now. We thought we might get 2,000 people and 25,000 rocked up. The fences were all smashed in, and everyone was just everywhere – but it was a good feeling, as it meant we had something. From then on, the festival was always a cash surplus. It has produced revenue from year to year, the motor industry really got behind it, and that was the big turning point. That gave us the resources to do things with. We want to be exceptional and we invest accordingly. CONTEMPORARY GOODWOOD IS A SPECIAL BLEND OF TRADITION AND MODERNITY. DOES ITS HISTORY CREATE CHALLENGES? It’s good. It’s what we do. One of our big values is around authenticity, so it’s important we don’t do things that aren’t authentic to the place. Hence we deferred to the sports that were here originally. We can tell a great story around them, we’ve got books about them and pictures of them. I found a picture of my grandfather in the 1930s, driving his Lancia in his own event. So suddenly we were able to say that in 1934, the festival had already happened. So history is important, it has to be real, and then it’s a case of how do we make that Business Leader - Inspire • Inform • Connect
"HISTORY IS IMPORTANT, IT HAS TO BE AUTHENTIC, AND THEN IT’S A CASE OF HOW DO WE MAKE THAT RELEVANT TO THE MODERN WORLD AND I HOPE WE DO." ‘SHEER LOVE OF LIFE’, A SENSE OF ‘DERRING-DO’ AND AN ‘OBSESSION FOR PERFECTION’ ARE GOODWOOD'S VALUES – HOW DO YOU EMBODY THOSE VALUES? I’m a total perfectionist, so that’s the big one. First and foremost, we’ve got to do everything as well as we possibly can. Authenticity I’ve already mentioned. Derringdo? I want everyone to be creative, I’m passionate about that. It’s very unusual to have the venue, the event, and the brand, all together, and we do in all instances. All the tickets we do ourselves, all the transactional activity we do ourselves, we manage the events ourselves, and the hotel, and the golf courses. In the digital world now, you can run a hotel – globally – on your own, you don’t need a whole hotel marketing group behind you. We do it all ourselves. We have very few outsiders coming in.
YOU RUN 29 BUSINESSES AND WORK 12-HOUR DAYS. WHERE DOES THIS DRIVE COME FROM? It’s just the nature of the beast. I’m in backto-back meetings all day, and then I have all the other stuff to do, so I end up doing that at night. But the thing is to keep up, if I’m going to be involved and be on top of things. About a million people a year now come to the estate so it’s quite a sizeable operation, and we employ 750 people. It does require a very entrepreneurial spirit. HOW DOES A WORKFORCE OF THAT SIZE – WORKING IN MANY DISPARATE FACETS OF THE BUSINESS – BECOME A TEAM? It’s interestingly diverse. We’re doing everything from aviation to organic food, all in one place; I think that’s quite a challenge for everybody. But we’ve broken it down into divisions, there’s a Managing Director of each division, and a leadership team of seven, so if I fell over tomorrow, they would run it fine, and that’s obviously important to me. WHAT KIND OF RELATIONSHIP DOES GOODWOOD HAVE WITH THE WIDER SUSSEX COMMUNITY? Good. We’re a big local provider. We bring a million people a year into the area, and we’re putting half a billion pounds a year into the local economy. Of course we’re very closely connected to Rolls-Royce. They’re a tenant. I sit on the board. They have 2,000 people. Every Rolls-Royce in the world comes from there. Between us, we are by far the biggest employer locally. DOES IT GIVE YOU A LOT OF SATISFACTION TO KNOW YOU ARE SUPPORTING THE LOCAL COMMUNITY? Sure. The point for me is to try to maintain the community – a lot of families have worked here for hundreds of years. It’s really, really important. But we shouldn’t just talk about now. Since the 18th century, Goodwood has played a really important part locally. You look at these fabulous old photographs of the horse racing in the 19th century, everyone arriving at the station, bunting everywhere, carriages in the street and everyone dressed fabulously. In a funny way, it hasn’t really changed, there’s just perhaps a bit more of it. Cont.
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COVER STORY YOU’RE ON RECORD AS BEING ‘WORRIED’ ABOUT BREXIT. HOW DO YOU SEE IT IMPACTING ON GOODWOOD? I am worried about it. I don’t like it, but it’s better than it was; it’s good we know where we are. Of course, we’re massively close to the car industry and it’s going to have a massive impact there. The car industry anyway is going through huge change, and that’s not going to help, so it’s a big concern. I think it’ll be difficult for a while, and then it’ll probably get better and we’ll be back where we were, but I think it’s going to take a few years to come good again.
DUKE OF RICHMOND It says a lot about what we do, about the place, about long-termism. We want to produce great food, and that’s the best way to do it. HOW DOES THAT FOCUS ON SUSTAINABILITY RECONCILE WITH EVENTS LIKE REVIVAL AND THE FESTIVAL OF SPEED? If you look at Revival and think about the whole repair, reuse, recycle concept, it fits brilliantly well. These cars may be fantastically valuable, but that’s irrelevant. The GTO Ferrari, for example. In the 1960s you couldn’t give them away for £5,000 and they were sitting in every showroom in Europe, now they’re worth $70m (£59m); it’s just an old race car, they’ve been smashed up, rebuilt, smashed up again, rebuilt, and so they just keep on going. In that sense, they’re just sustainable old things. Also in terms of sustainability, the best thing to do is drive an old car rather than buy a new one, because the amount of energy involved in building a new car is way beyond the amount of energy any car ever consumes during its lifetime.
(L-R) Ross Brawn with the Duke of Richmond and Jenson Button the Goodwood Festival of Speed 2018
GOODWOOD’S FOOD AND DRINK OFFERING HEAVILY PROMOTES ORGANIC PRACTICE, SUSTAINABILITY AND ANIMAL WELFARE. HOW IMPORTANT ARE THESE ISSUES TO YOU? They are fundamental to the place, and very important to me. My mother ensured we were all brought up, not totally vegetarian, but with an unusually healthy lifestyle for the 1960s, which everyone thought was pretty crazy back then – now, of course, it’s just standard stuff. We had to make a choice with the farm about 20 years ago, and we decided to go organic. We have this closed-loop system where the animals are born here, live here all their lives, only eat food we grow; it’s very pure. 14
The Festival of Speed we’ve got to make as sustainable as we can. But we’ve got Future Lab, looking at ways of doing things differently and better. Its all about mobility, connectivity, and how the motor car is going to change, what does electrification mean. What does autonomous mean. We have a big conference here on the Friday of the festival looking at all of this. We’re right at the forefront of showing what the technology is going to look like – the two fastest cars at Goodwood last year were both electric.
barmy. They had no nostalgia, that wartime generation, they just thought all that stuff was finished, let it go. I hope they’d be pleased or feel excited – excited by what they've created, and the way it has turned out 300 years later – and I hope they’d feel it was a natural progression of their passion. Goodwood has always been about hospitality, and all these things they did – big house parties, entertaining, having the Tsar to tea – it was all about giving people exceptional experiences. YOU SAID AT THE OUTSET YOU WANT TO BE THE WORLD’S BEST – HOW CLOSE DO YOU FEEL YOU ARE TO THAT? We’re a long way away, I’m sure, but everyone is trying. All you can do is pick yourself up each time and have another go. And one of the challenges of running a business like this is doing just that. The guys running our restaurants have got to do it every day – that’s a huge ask. People doing the event have a long time to wait to do it again. They can’t just say ‘that bit didn’t go so well, we’ll get that right tomorrow’ so you’ve got to really focus on what didn’t go well, really making sure you remember issues and fix them. Otherwise, every year you’ll just be putting on the same old thing and it doesn’t move on. I see all of the complaint letters. I hate reading them, but you’ve got to take the pain, as I hate it when people don’t have a perfect experience. It’s a dagger to the heart for everyone. WHAT AMBITIONS DO YOU STILL HAVE LEFT TO ACHIEVE FOR THE GOODWOOD ESTATE? Lots. We’ve got to keep it going in a difficult world, that’s a big challenge, and we’ve got to find new things to do. And I’ve got to have a good succession plan with my son, that’s pretty important – if I fail at that, then the whole thing’s been a waste of time. We’re not changing the world, but we’re doing things that move people and bring people together. If we can have an impact on people in this way, that makes it all worthwhile.
WHAT DO YOU THINK YOUR PREDECESSORS WOULD MAKE OF THE DIVERSIFICATION OF THE CONTEMPORARY GOODWOOD BUSINESS? They would think it was all absolutely bonkers. My grandfather certainly would think the whole car stuff was absolutely March - April 2020
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FINANCE REVIEW
WHAT ARE THE BEST FUNDING OPTIONS FOR SOUTH WEST BUSINESSES THAT ARE SCALING UP?
B
Business Leader was the media partner for the recent Business Funding Show – which is the UK & EU’s leading event that connects funders with entrepreneurs. The event brought together thought leaders in the sector to discuss the future trends that are shaping the funding landscape. The Business Funding Show kicked off with a panel debate that provided an overview of the funding environment for businesses. The panel was chaired by Matt Adey, Director & Senior Economist at British Business Bank, and included: Juliet Rogan Head of High Growth & Entrepreneurs at Barclays Peter Cowley Author and prolific entrepreneur and investor Umerah Akram Head of ELITE UK
Matt Adey started the discussion by saying: “We’re seeing a big rise in alternative finance – with funding mechanisms such as asset-based landing increasing. The bank lending picture has been relatively flat and alternative finance companies have grown rapidly in order to support start-ups and scale-ups” The panel was then asked: WHAT ARE THE KEY DEVELOPMENTS THAT WILL SHAPE THE FUNDING ENVIRONMENT IN THE YEARS AHEAD? Jenny Tooth OBE: "Looking back at the last year there was some concern amongst investors about backing businesses and entrepreneurs, in what was a time of uncertainty. "Now, with more political certainty, it appears the investor community is back and ready to start backing start-up and scale-up companies again.
Tim Mills Managing Partner at the Angel Co-Fund
"I have also noticed that venture capital funding is going up and up the scale to fund bigger deals; and this has left angel investors to fill the space on the rung below."
Jenny Tooth OBE CEO of UKBAA.
Tim Mills: "We now have a strengthened government which will be unveiling policies
16
that will have a direct positive bearing on the investment community. "The opportunity is there and with interest rates not looking like they are going anywhere, investing in businesses remains a sound and attractive investment." Umerah Akram: "I recently read with interest a Beauhurst equity investment report which showed that in 2019, £12bn was raised in private deals, with more than 1,700 deals pushed over the line. "In contrast to this, the IPO market was quiet last year but there was still £30bn raised on the markets, with around £6bn or £7bn coming through actual IPOs. "This shows that there are clear benefits to being a listed business because you can raise significant amounts of investment to fund growth."
"THE OPPORTUNITY IS THERE AND WITH INTEREST RATES NOT LOOKING LIKE THEY ARE GOING ANYWHERE, INVESTING IN BUSINESSES REMAINS A SOUND AND ATTRACTIVE INVESTMENT." Tim Mills
March - April 2020
FUNDING GROWTH
Jenny Tooth OBE
Tim Mills
Umerah Akram
Peter Cowley
Peter Cowley: "Becoming an entrepreneur has almost become a career choice but this has meant that there are more people looking for money to fund their businesses; and the number of disappointed entrepreneurs who can’t raise finance is growing.
Cowley: "In terms of trade – If you look at my portfolio, many of the businesses I deal with don’t in the short term want to trade into Europe because it’s not easy to do so due to different tax regimes and business psychology. In this respect, it’s easier to trade in the USA.
"The point is that you can’t just assume there will be money available. The statistics reveal that only one out ten get the finance they need – so that’s lots of entrepreneurs who won’t get finance.
"This is the case for smaller businesses but of course as you grow you do want to consider international trade. It’s also worth noting that funding from the European Investment Bank is being replaced by funding from the British Business Bank, so this looks like its safe.
"At the end of the day the best finance comes from customers – so product market fit is better than equity dilution." HOW MIGHT THE RECENT BREXIT MILESTONE AND THE SUBSEQUENT TRADE DEAL IMPACT THE FUNDING LANDSCAPE? Mills: "The negotiations around trade deals will be focused sector by sector and inevitably there will be winners and losers in any deal. As a fund, we have several fintech investments that are focused on Europe, so where we end up from a regulatory point of view regarding finance, will be vitally important. "You can already see that the grant funding landscape is changing because of our new relationship with the European Union." Business Leader - Inspire • Inform • Connect
"I don’t think the process of Brexit will make too negative a difference in regards to trade and funding, but I do feel that there will be an issue around access to talent and this will have an impact and will create difficulties."
"THE £13.2BN OF FUNDING RAISED IN THE UK LAST YEAR WAS MORE THAN GERMANY AND FRANCE COMBINED; AND MUCH OF THIS WAS FROM US AND ASIAN INVESTORS" Juliet Rogan
Juliet Rogan
Juliet Rogan: "The £12bn of funding raised in the UK last year was more than Germany and France combined; and much of this was from US and Asian investors, so it’s still clearly a very important market and this should be a positive." HOW DO ENTREPRENEURS ENSURE THEY HAVE THE CORRECT BLEND OF FINANCE? Rogan: "The current funding landscape provides a good opportunity for entrepreneurs to blend both debt and equity. This will be determined by the risk profile of the business and what stage in the business cycle it is. For example working capital can be funded by debt, whereas product development is more likely to be funded by equity or retained cashflows in the business." WHICH SECTORS ARE HOT GOING FORWARD REGARDING FUNDING? Cowley: "One interesting trend I’m seeing is the conflation of data and healthcare – with big data being used to achieved health outcomes." Tooth: "I’m going to bang the drum for female entrepreneurs as I’m seeing more and more of them and femtech is growing and growing." 17
REVIEW
FUNDING GROWTH
AN ENTREPRENEUR’S LIFE
T
he Business Funding Show then turned its attention to what it takes to be an entrepreneur and explored the real-life challenges that founders must take on during the cycle of running a successful business. This panel brought together: Gonçalo De Vasconcelos Rnwl Kenneth Siber WeWork Labs Anthony Rose SeedLegals
GONCALO – CAN YOU EXPLAIN YOUR LATEST BUSINESS RENWL? WHAT DO YOU WANT IT TO BE KNOWN FOR? Goncalo De Vasconcelos: "Insurance is boring and nobody wants to deal with it and must spend time shopping around and responding to autorenewal letters. So, we are looking to do something about that and automate the process for people."
WHAT ARE YOU DOING DIFFERENTLY WITH THIS BUSINESS?
you start to think about pitching for other people’s money?
De Vasconcelos: "You know it’s interesting to see how experience is so helpful because when I started my last business (Syndicate Room) I didn’t know the difference between a limited company and an LLP for example. It’s also been helpful that when people see my name in their inbox, they respond to my emails now."
"You can’t own more than a 100% of your business – so it makes sense to bring in debt or give away equity at some point but you need to remember that lenders only lend you money if you have a revenue steam.
ANTHONY – YOU’RE A SERIAL ENTREPRENEUR. WHY HAVE YOU DECIDED TO SET UP YET ANOTHER BUSINESS? Anthony Rose: "Once you’re a founder it’s very difficult to work for anybody again. On leaving the BBC I sold a couple of firms and was tired of paying law firms for my legal work. This inspired me to set up SeedLegals and we’re just trying to make things easier for people." IN YOUR OPINION ANTHONY – HOW QUICKLY SHOULD YOU RAISE EQUITY FINANCE? Rose: "Our data shows that founders put an average of 26k of their own money into the businesses. Why? Because nobody will invest in a PowerPoint – you must build something and show market fit before you can think about investment. So, the question then becomes– when do
"The time to raise is when you think you’ll need more money than you can spend yourself. Or when you’ve reached product market fit." HOW IS BEST TO START A BUSINESS – AS A CO-FOUNDER OR A FOUNDER? De Vasconcelos: "I would say it’s easier with a co-founder, but you do have to split the equity. With a co-founder it’s much more fun and starting by yourself can be lonely." Kenneth Siber: "I would say co-founder as well but make sure you align expectations when you start and make sure you both want the same things." Rose: "I believe there are three roles needed for a successful business: 1. Domain expert – this is the doctor and the person with the passion to drive the business. 2. Who is going to build it – this is the tech guy or CTO. 3. Mr or Mrs money – this is the person who is going to get it funded- usually the CEO. "If you’re a person that can cover all three roles, then that is great but it’s rare that one person has all these skills. This means that having a co-founder will make it more likely to have these skillsets and you can also have checks and balances on what you’re doing."
Cont. 18
March - April 2020
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REVIEW
FUNDING GROWTH
ENTREPRENEURS ARE GETTING YOUNGER AND THERE HAS BEEN 700% RISE IN TEENAGERS BEING ENTREPRENEURS, WITH ONLY ONE IN FOUR TEENAGERS NOW HAVING A PART-TIME JOB. CAN THEY HANDLE THE MONEY SIDE THOUGH, WHEN IT COMES TO BEING IN BUSINESS? Siber: "I wonder if it’s the case that people are starting companies much earlier because I saw some statistics that showed that in terms of returns, the perfect age to start a business is at the age of 48. "It showed that the maximum return for investor capital is a 48-year-old founder with some previous experience in the sector they are launching the business in. "On the question of can younger people handle the capital at a young age? Some can and come can’t. It’s tricky if you’re very young to handle this – you’re not just given a sack of money because it also often comes with the message that you’re the best thing since sliced bread and to go out and kill the world." WHERE ARE ENTREPRENEURS COMING TO YOU AND SAYING THEY NEED MOST HELP? Siber: "The common challenges are around skills and access to finance, but they will of course be different at different stages in the business – depending at where you are at in your cycle. What we try to do is bring people together at different stages."
Gonçalo De Vasconcelos
Kenneth Siber
WHAT ARE THE THREE ELEMENTS YOU NEED TO GET RIGHT TO RAISE YOUR FIRST MILLION? Rose: "You need to run it like a military operation – I talk to many founders and when you hear things like ‘my co-founder is going to be giving up their job to focus on this full-time’ – no! There are lots of businesses that investors can support, so you need to ensure you’re making the proposition as attractive as possible. "You need to have such a single-minded focus on your goal and how you are going to get there; that it becomes attractive to an investor. "People think the key problem is to build stuff, but the actual problem is finding a market for it and somebody to buy it. "All too often people spend the investment money building acres of stuff, but they don’t identify if there is a market for it."
20
Anthony Rose
Siber: "Investors want to see somebody that will literally break down walls to get this product up and running and drive it to become a success. It’s that passion and drive that inspires investors to lend." WHEN IS THE RIGHT TIME FOR A FOUNDER TO STEP ASIDE AND LET SOMEBODY ELSE TAKE CONTROL OF THE BUSINESS? Siber: "I remember one of our first investors asking an insightful question, which was: “do we want to be rich or a king?” "This comes from metrics that look at control on the one axis and reaching maximum potential on the other axis. It is rare that you retain all the control and reach maximum potential – this is your Google or Facebook. Typically, you don’t get both. "If you take all the control, you’ll never realise the potential, but you will be the king. You must ask yourself – what do you want to be and how does this sit with your role as a founder? Control is a bit of an illusion because to be successful you do have to give it up." De Vasconcelos: "Entrepreneurs obsess about it too much – often they may not be the best person to run the business. For example, when a business becomes successful it can become very operational and letting somebody else run the business and you moving on can be good, as it means you can then start another business."
March - April 2020
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WHAT NEXT FOR THE AUTOMOTIVE INDUSTRY?
T
he motor industry is evolving at an unprecedented rate, with emerging technologies, changing mobility trends and environmental concerns setting the agenda.
Business Leader partnered with Barclays Corporate Banking for a roundtable with some key players from the sector to ask: What does the future hold for the automotive industry?
WHAT ARE THE CHALLENGES FACING THE CONTEMPORARY AUTOMOTIVE INDUSTRY?
the roads – there are massive, massive challenges for everybody in all sectors of the industry.”
Tim Bagnall, MD at CCR Motor Co: “Electrification – the transition from combustion engines to electric – is having a massive impact. I think general environment and social responsibility at board level, plus government policy, is driving the change through, and the pace of change is just immense.
Robert Freeman, CEO of Malvern Tyres: “When you get down to it, where is the infrastructure? Are you going to have electric wires hanging out of shop windows?
“The challenge in the marketplace is getting the customer to understand that change, to understand the technologies. The buying public don’t really know what’s going on. “From an infrastructure point of view too – how we charge these vehicles out on 22
“The public will not accept it unless the infrastructure is right. If the infrastructure is not right, they’ll do a u-turn, they’ll have to. I just can’t see the infrastructure spend.” Martin Wilson, MD at Scot Group: “Is electric the ultimate answer anyway? Or is it just a stepping stone to something else? Why would you put massive investment into electric if it’s not the ultimate answer?”
Michael Finn, CEO at Wellington Motor Group: “There are still some major manufacturers investing very serious amounts of money in diesel technology. Everybody says diesel is finished, petrol is finished – why are they investing so much money? It’s confusing, it really is. “If the world wobbles again – and we’re going to have another recession at some point – all of this gets put back at a dramatic rate. “The government bringing back its petrol and diesel end date from 2040 to 2035 was a nice statement for them to say, it makes good headlines, but I honestly don’t think they knew what they announced. When it comes to hybrids, I definitely think March - April 2020
AUTOMOTIVE INDUSTRY THE FUTURE OF THE AUTOMOTIVE INDUSTRY SPONSORED BY BARCLAYS COMMITTED TO HELPING BUSINESSES ACHIEVE THEIR AMBITIONS T: 07766 364 541 | E: howard.noye@barclays.com
The Panel Tim Bagnall MD, CCR Motor Co. Darren Lakin Aftersales Director, Wessex Garages Michael Finn CEO, Wellington Motor Gp Martin Wilson MD, Scot Group Robert Freeman CEO, Malvern Tyres Kieran Hector FD, Carbase Tim Lincoln Partner, Grant Thornton Keith Parry RD, Barclays Howard Noye RD, Barclays Sara Appleton Barclays
there’s going to have to be a bit of backpedalling.” Kieran Hector, FD at Carbase: “It is just a political target, and you’re right, they don’t fully understand it. There’s obviously a huge amount of climate change pressure at the moment, but it’s the technology and infrastructure that will dictate how quickly all this is possible. “In Norway, 40% of cars sold now are electric, so I think with the right push from the government to incentivise it and help with the roll-out, it can be done but I think the UK – despite its climate change claims – has a long way to go yet.” IS THERE THE SAME DEMAND FOR ELECTRIC VEHICLES (EVs) IN THE RENTAL MARKET? Wilson: “Not at all. The investment at point of entry is huge. Plus, there’s so much inconsistency on diesel engines in the press. If you talk to the manufacturers, the diesel engines are more efficient, have less Business Leader - Inspire • Inform • Connect
www.barclayscorporate.com
pollutants than petrol engines, but the big headlines are that we’re going to ban diesel – it’s crazy.
garages, which is a little easier because they have been in the flow of it for six years now. But supply is an issue for definite.”
“My thoughts are electric vehicles will be a stepping stone for potentially hydrogen, certainly for commercials and trucks, and I agree the infrastructure is not there at the moment. But you could invest significant amounts of money into infrastructure to charge cars that could be obsolete within five years – trying to keep pace with that is incredible.”
Finn: “I think manufacturers are just thinking about China and North America; that’s the driver. The reality is, if they move the pendulum in China just a little bit, they have made it.
Hector: “There is a problem as well with the physical space for charging, as it takes a lot longer to charge a car than it does to fill up with petrol or diesel. Having a petrol station equivalent where people could park for 45 minutes… the numbers don’t add up.” WHAT DOES THE GOVERNMENT NEED TO DO TO UNDERSTAND THE SECTOR AND GET THIS RIGHT? Freeman: “Stop playing games, and start being a government. It’s all about headlines and social media.” Bagnall: “Communication for me would be the key. If I make a statement in our business that I want to do something, the question is always how are we doing to do it. You’ve got to have a strategy. “And that’s the bit I find frustrating; they say by 2035, hybrid’s out. But unless they come out and say this is how we’re going to do it, that’s where confusion comes from, because they’ve come up with an idea and not told anyone how to do it. “I don’t believe they’ve consulted with Society of Motor Manufacturers and Traders (SMMT), with manufacturers, not in any wholesale way, not spoken to anyone who does this for a living and come up with a plan.” Finn: “You see all the headlines, but when you dive into it there’s not as much substance as you would want there to be. We want – and we plead for – clarity.”
“So you’ve got one bit that is legislationdriven but the other side is commercial opportunity; the point I made earlier about a lot of manufacturers still investing in diesel, that is because they clearly see a market in certain territories, and it’s a lot bigger market than we’ve got. The UK market will battle for supply because the percentages are so tiny. You’re looking at 1.5, 1.6% in that sector.” Wilson: “EVs are more expensive to produce, the margins are thinner, you haven’t got the profits driven through aftersales, so those things combined make electric vehicles more difficult. And the residual values aren’t as strong – or haven’t historically been as strong – as internal combustion engines.” Hector: “There’s not enough genuine demand for them at the moment. We sell used cars, so we have to deal with electric very little at the moment, but we have a fleet of 50 company cars, and we took on eight or nine electric vehicles and they have had all sorts of problems with the range and ability to use them. The headline numbers don’t stack up with the practicality. The public isn’t ready to follow up on all this political talk.” WHY ISN’T THE DEMAND THERE? Freeman: “Because they know how difficult it is. I had a rush of blood and thought I might get an electric vehicle, but I spoke to a mate who has one – he couldn’t get back from his holidays, the charging point was vandalised, and I’m thinking we’re just not ready for this. It doesn’t work.”
HOW IS THE SUPPLY OF ELECTRIC VEHICLES? Bagnall: “Supply has been genuinely difficult. We have a lot of Mitsubishi
Cont. 23
DEBATE THE FUTURE OF THE AUTOMOTIVE INDUSTRY SPONSORED BY BARCLAYS COMMITTED TO HELPING BUSINESSES ACHIEVE THEIR AMBITIONS T: 07766 364 541 | E: howard.noye@barclays.com
www.barclayscorporate.com Freeman: “We run 30 vans through the centre of Bristol every day, but we won’t be able to do it. It’s been going 70 years that business, but it doesn’t work; they say things that look great in headlines but they don’t think things through.” WE’VE TALKED A LOT ABOUT CHALLENGES. WHERE DO YOU SEE OPPORTUNITIES? Finn: “Because of the dreaded Brexit word, it feels as though the world has been up and down, but it’s settled down a bit. We have settled down, and our clients have settled down.” Tim Lincoln, Partner at Grant Thornton: “Speaking to one client recently whose volumes have been steady, actually profitability has improved and they’re starting to get back to their past percentage of profits. It’s through focusing on some of the fundamentals, and putting in more incentives around things like aftersales, where the margin is. I think there’s profitability to be made if you’re focusing on the right things.”
Finn: “The people who have bought into it love it, and they would find it really difficult to change back. If they can live with it, they absolutely worship it. The problem being is that still only fits that amount of people. “And of course they are perfect for city centres, perfect London vehicles, but you can’t charge out of your flat across the pavement with a lead, can you? If you live in the middle of nowhere you can have your home charging point, but then you’ve got this range anxiety. I think there’s an awful long way to go.” Hector: “I think a lot of people like the idea of electric cars, but they just can’t make it work. I’m not sure there’s even an electric charging point where I live because there just isn’t the demand.” BRISTOL IS THE FIRST UK CITY TO ANNOUNCE A DIESEL BAN, BUT OTHERS WILL LIKELY FOLLOW. WHAT WILL BE THE IMPACT? Hector: “I think the local authority has got it wrong by trying to impose a flat ban. Suddenly the whole middle of Bristol is 24
mapped out as banning all diesel. I don’t think people understand the implications of that, and we’re totally in the dark about whether that will be implemented in that form or will it be watered down.
Wilson: “I certainly think post-election that consumer confidence seems to be better. There seems to be a level of confidence that has come back in. Unfortunately we haven’t seen the residual value bounce Tim Bagnall that we lost from April onwards last year, but it’s definitely getting better. That’s much-needed because last year was tough.”
"FROM AN INFRASTRUCTURE POINT OF VIEW – HOW WE CHARGE ELECTRIC VEHICLES OUT ON THE ROADS – THERE ARE MASSIVE, MASSIVE CHALLENGES IN ALL SECTORS OF THE INDUSTRY"
“If you’re going to push for change, it has to be positive incentives to push people towards something rather than trying to ban something. The amount of upheaval from a blanket ban across the middle of cities is going to seriously threaten the survival of some businesses.” Hector: “We’re looking to the future and trying to expand. I couldn’t tell you where we’d need to go, but we certainly wouldn’t put another one in any city talking about the same kind of ban.
“But where else? It’s presumably going to be quite fashionable for local authorities to say we’re going to do that as well.”
Darren Lakin, Aftersales Director at Wessex Garages “We’ve certainly seen that. Consistently over the past 12 months, after-sales has been the bedrock of the business, while new and used car sales has been weak. “It’s a consistent approach to some very basic details which drives profitability, then you have a much more buoyant business – but we need all three facets of the business going at the same time.” March - April 2020
AUTOMOTIVE INDUSTRY THE FUTURE OF THE AUTOMOTIVE INDUSTRY SPONSORED BY BARCLAYS COMMITTED TO HELPING BUSINESSES ACHIEVE THEIR AMBITIONS T: 07766 364 541 | E: howard.noye@barclays.com
"I THINK MANUFACTURERS ARE Keith Parry, Relationship JUST THINKING ABOUT Director at Barclays CHINA AND NORTH Corporate Banking: “The AMERICA; IF THEY MOVE headline new reg stats were a bit disappointing, 7% down. THE PENDULUM IN But all the dealers I spoke to CHINA JUST A LITTLE BIT, said January was fine. Why THEY HAVE MADE IT." IS IT THE SAME PICTURE FOR NEW AND USED CARS?
do we put so much emphasis on that headline for new registration stats? If your aftersales is strong and you’re on top of used, then as a business you can cope with one of those plates not spinning as well.” Bagnall: “The end market is not there, so you end up with an oversupply, which results in the residual drop we had from April. All the 2016 peak registrations coming off contract hires, there was just a flood of three-year-old diesel vehicles. The market had to realign. That hurt us all, and it was really painful last year.”
Hector: “We’re finding it an ongoing problem that every year the used vehicle market just seems to drop and drop. It’s just a race to the bottom. It’s harder and harder to get a supply of cars at a margin we can make work and I don’t know where that ends. The typical margin in the industry is about 1%, so it’s not like you have a lot of scope to absorb it.” Freeman: “It is a race to the bottom – especially with increasing labour costs. We’re suffering from real creeping labour costs for MoT testers and technicians. The growth there is about 20% in the last few years, so you’re squeezing your margins all the time, with prices going down and labour costs going up.” IS THE SECTOR FACING A BIG THREAT FROM ANY DISRUPTORS? Bagnall: “Mobility as a service is one of the megatrends coming through. It’s subscription-based – the idea that you pay £300 a month, or whatever, and you can have a car for three months, or a city car during the week and an SUV at the weekends. “Our Japanese parent is a big rental firm, and that’s how they are pushing MAAS, Business Leader - Inspire • Inform • Connect
not through dealers, but as the preserve of the rental operations because they are geared up to do it. That swap and change of SUV for Saturday, a sports car for Saturday night and a city car for the week, I don’t see that as a dealership issue and I think ultimately we are going Michael Finn to lose business.”
Wilson: “When you’re talking about swapping cars two or three times a week, there’s a huge cost. If you look at some of the initial out-and-out subscription services, they are hugely expensive, and Mercedes-Benz has pulled out of the UK because there’s just no market for it. “The opportunity for someone to step into a sports car for the weekend, city car during the week, and an SUV for whenever – the cost of that is enormous. “The point of someone wanting to not own a car will come. But I don’t think everyone is ready for it yet.” Finn: “Ultimately there comes a time when a disruptor has to make a margin. In our business, it costs a lot of money to move a widget, it really does. When you start seeing those make serious money, you’ll see a lot of people want to get on board.” HOW IS THE AUTOMOTIVE LABOUR MARKET? ARE THERE ISSUES WITH SKILLS, RECRUITMENT AND RETENTION? Hector: “Technicians are the biggest problem – there just seems to be a shortage.”
www.barclayscorporate.com the MoT testers have gone up to £30k; it actually is making MoT testing unviable.” Lakin: “That has been driven historically by the race to the bottom. MoTs at £19.99 – we stopped that, £40 is our minimum. Otherwise it is not viable, because the cost of labour is skyrocketing. A guy doing 10, 12 MoTs in a day doesn’t cover his costs.” AND WHAT IS BARCLAYS’ VIEW OF THE SECTOR? Howard Noye, Relationship Director at Barclays Corporate Banking: “Negotiations around the UK-EU trade deal will be key to the industry’s long-term prospects, while motor dealers will also be focused on the recent government commitment to greener vehicle production by 2035. "If the infrastructure necessary for electric vehicles is committed to wholeheartedly, then the public’s appetite for more environmentally-friendly modes of transport could provide a significant boost to the UK car market.” Parry: “There are a lot of sectors, with the economy being the way it has been over the past couple of years, which are challenged. But since the election result in December, the market has been increasingly optimistic about an increase in consumer spending on big ticket items. Barclays remains keen supporters of the sector. “There are a lot of big headlines, and a lot of it may happen over time, but I think it will be evolution not revolution and I think the sector is really resilient to cope with that change, I really do.”
Freeman: “It’s not trendy, is it? Truck tyre fitters is ten times worse. We could double our truck business if we had the staff. They are earning £30k, £40k, £50k, these truck fitters and they are still leaving. The younger generation have changed their expectation of life, and they don’t want to get their hands dirty. We need to address this. “I have 20 MoT stations, and I’m actually looking at the viability of MoT testing because it doesn’t make money. You’re looking at £30 or £40 for an MoT, and 25
REVIEW
HOW ARE UK INCUBATORS SUPPORTING BUSINESS GROWTH?
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ome of the UK’s most successful businesses have been nurtured through the process of an incubator – but what is an incubator and what does the future hold for the concept? This article will also look at the true impact of their introduction to the UK. How are they evolving? And what support do they offer businesses and entrepreneurs?
Incubators come in many different guises, varying considerably in their offerings and areas of focus. In general, they all share the common remit of helping early-stage businesses achieve growth quickly by providing support around office space, mentoring, professional support, subsidised or free professional services and access to funding. By offering all these resources, participating businesses can focus on achieving product market fit, as opposed to spending valuable time securing this from external sources. 26
How are incubators helping businesses? Typically, incubators work with companies that aim to disrupt current business models in a variety of sectors to grow British industry, both at home and abroad. In late 2019, the Department for Business, Energy & Industrial Strategy (BEIS) issued a report which looked at the effectiveness of UK-based incubators. The report states that out of “428 start-ups that have previously or are currently attending an incubator or accelerator, we find that most start-ups consider the contribution of the incubator
or accelerator as significant or vital to their success.” Dr Francine Morris, Associate Dean, Enterprise and Industry Engagement at the University of Salford Business School, gives more detail around the benefit of incubators: “Incubators are vital support systems to those in the early stages of setting up their business. "They provide a sense of community and a safe place to test a business idea, whilst surrounded by like-minded people. March - April 2020
BUSINESS INCUBATORS
And, according to Nesta, 73% of start-ups consider the contribution of the incubator or accelerator they attended have been significant or even vital to their success. So, with entrepreneurs and start-ups gaining more opportunities to survive and thrive, the role of incubators has also become crucial to upskilling workers to new age technologies and working practices.
They can also give the entrepreneurs the necessary training and networks to become successful.”
"INCUBATORS ARE VITAL SUPPORT SYSTEMS TO THOSE IN THE EARLY STAGES OF SETTING UP THEIR BUSINESS. THEY PROVIDE A SENSE OF COMMUNITY AND A SAFE PLACE TO TEST A BUSINESS IDEA." Dr Francine Morris
Business Leader - Inspire • Inform • Connect
becoming a successful and stand-alone business. By providing a collaborative eco-system, these businesses within an incubator can share the trials and tribulations of starting a company – with the environment stopping an entrepreneur from shouting into an echo chamber.
Leon Howe, Incubation Manager at Durham City Incubator, comments: “Incubators help businesses by providing Johnathan Matlock from Bristol-based a workspace to share with other likeincubator Unit DX comments: “In my minded entrepreneurs which nurtures experience, one of the key factors of an collaboration, sharing of experiences and incubator is to upskill members of a team contacts. Providing a space, support and that wouldn’t have access to investment had the opportunity is critical to any new or experience to learn "ENTREPRENEURS BELIEVE business. Incubators can certain skills before. develop the founders to DIRECT FUNDING, ACCESS Employing people with understand the stages TO OFFICE SPACE, LAB the right skills is great, in starting and growing a SPACE AND TECHNICAL but one of the keys with business and if they get incubators is providing EQUIPMENT ARE THE MOST it right, have the potential the opportunity to give to scale and create VALUABLE SUPPORT THAT people that industryjobs and wealth for the INCUBATORS CAN OFFER." ready experience and economy.” Matt Smith skills. A key role of Impact on the economy incubators should be a The natural question way for people to access would be to find out what impact these opportunities to upskill from c-suite, all the incubators have had on British businesses way down to apprenticeships.” and the wider economy – especially as this Matt Smith, Director of Research and government (BEIS) has revealed ambitions Policy at the Centre for Entrepreneurs, to continue to support the concept. agrees. He said: “Incubators are important Howe continues: “Providing a safe for closing the skills gap because of the environment where founders are supported in-house nature of the services which and also challenged can help them develop they provide – many offer opportunities the business concept into a business model to businesses and start-ups to not only that can secure investment and scale. Not develop their businesses but also harness every business will be a success, however key skills through different services they those that succeed are likely to have a offer within the incubator space.” greater impact on the economy. Smith also believes that entrepreneurs “Many incubators in the UK have some can benefit heavily from developing their flagship businesses they have supported company or companies in an environment which have grown into successful like an incubator. He comments: businesses, creating wealth and “Entrepreneurs believe direct funding, employment opportunities. For those that access to office space, lab space and don’t succeed, the founders have the technical equipment are the most valuable knowledge to establish their next venture support that incubators can offer. However, and make it a success.” access to investors, access to peers, help with team formation, direct funding, press or media exposure, mentoring from an industry expert, help measuring social impact and mentoring from an investor are shown to have the highest positive impact upon entrepreneurs.” Incubators are providing start-ups and entrepreneurs with an easier route to
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REVIEW
BUSINESS INCUBATORS
Individual incubators have provided information on the successes and failures of the companies and individuals that use their platforms and spaces. In 2018, an independent study was carried out by Warwick Economics to access the economic impact of SETsquared – ranked the world’s leading business incubator. The study concluded that: •
965 businesses were supported by SETsquared between 2015 to 2017, with the partnership providing 3,645 business assists since 2002.
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The Gross Value-Added contribution of SETsquaredsupported businesses each year indicates that they have directly contributed a total of £5.8bn to the UK economy between 2002-17.
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The level of employment supported by these businesses is estimated at 10,900 jobs in 2017. This is projected to rise to 22,200 by 2030.
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Projecting the forward impact of the programme, assuming the level of support continues at the current rate, supported companies could rise to 6,650 and contribute a further £12.4bn to the economy between 2018-2030.
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Including an estimate of supply chain impacts of the businesses, the cumulated direct and indirect impacts on the UK economy are estimated to be £8.6bn by 2017 and a further £18.3bn by 2030.
Jane Khedair, Director at Institute of Innovation and Entrepreneurship at London Business School, comments: “Business incubators undoubtedly have a huge impact on the UK economy; creating jobs, stimulating innovation and fostering entrepreneurial flair to enable new products and services to be brought to market which would otherwise remain only as ideas.
"WITHOUT THESE INCUBATOR SPACES, THERE WOULDN’T BE ANY INNOVATIVE AND DISRUPTIVE COMPANIES ENTERING THE MARKET." Johnathan Matlock
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The Unit DX team
“Although the selective nature of incubators, only taking on the best startups, makes it difficult to quantify their added value, it’s widely recognised that both success as well as survival rates are generally much higher for businesses which have been supported by the resources an incubator programme typically offers. “It’s well documented that, across the UK, less than 40% of start-ups exist after three years so a survival rate in excess of 80% for the businesses that we incubate at London Business School is hopefully indicative of the efficacy of incubation as a whole.” The growth of incubators has increased significantly in the past few years and has had an positive impact on both regional and national economies. According to Nesta data, in 2019 the presence of an incubator within a two to three kilometre area was associated with increased growth in normalised wages (i.e. average of wages relative to average wages in a specific sector and occupation) and increased high-level occupational change up to four kilometres away. Examples of successful business incubator services include the SETsquared Partnership, an incubation and start-up growth acceleration network, which is forecast to contribute £30.7bn to the UK economy by 2030. Have they been a success? An additional way of judging the success
of incubators is to look at their popularity across the country. In terms of capacity, a report from the Centre for Entrepreneurs showed 75% of UK university incubators were at or close to full capacity, demonstrating their demand from start-ups and entrepreneurs. Matlock comments: “Without these incubator spaces, there wouldn’t be any innovative and disruptive companies entering the market because you are relying on people discovering those elements of starting a business on their own. When an incubator provides a lot of shared resources and advice that can sit across multiple businesses. With businesses in an incubator you can surround yourself with creative and knowledgeable people that can sit across multiple companies – helping them all to share ideas and grow together.” And the future for the whole incubator space looks set to have a positive impact on the economy too. Matlock comments: “If you look at the government’s Industrial Strategy 4.0, it's about identifying which industries and sectors are going to add to the UK’s GDP over the next ten years. "One of the key elements of that is that those companies need somewhere to be. These are the spaces where innovation and disruptive technologies are born. Incubators are absolutely critical to the formation of new companies that contribute to the UK economy.” March - April 2020
ADVERTORIAL
SWEET CONSTRUCT BENEFITS FROM WESTON COLLEGE SUPPORT CAN YOU GIVE US AN OVERVIEW OF SWEET CONSTRUCT? Sweet Construct is a commercial construction company based in Flax Bourton. Working as a Main Contractor, we provide all services from formwork to fit-out. This includes design, civil engineering, construction, and with joinery and manufacturing involving our sister company Sweet Joinery. The company has been in operation for over 40 years and is now run by the third generation of the Sweet family. We have experienced considerable growth in the past 18 months and rebranded in September 2019 from H Sweet and Sons. This growth has led to an office move and the recruitment of many new departments, taking us from 21 employees to more than 60. In January, we were also delighted to win the Enterprising West of England Ones to Watch 2020 Awards for North Somerset. A very proud moment! WHAT ARE THE KEY CONCERNS/ CHALLENGES IN THE CONSTRUCTION INDUSTRY? Skills shortage is a major challenge in the industry, threatened by an aging workforce and by new technologies. At Sweet Construct, we recognise the importance of retaining our key employees and we want our people to enjoy working for us by giving them more than just a job. Developing our people is a priority, and we have rolled out initiatives such as communications training because good communications help to drive engagement. We also have company-wide personal development plans to help the team map their careers and a clear focus on upskilling our early careers and apprenticeships team through a programme of bespoke training and workshops. Business Leader - Inspire • Inform • Connect
WHY ESTABLISH A PARTNERSHIP WITH WESTON COLLEGE? We have chosen to work with Weston College as they are clearly aligned to our business needs. One of our key objectives for 2020 is to secure more work within a 90-minute radius of our head office so that our teams BLM speaks to Emma Tate can enjoy a greater Early Careers & Apprenticeships Lead at Sweet Construct work/life balance and in order for us to deliver the best possible service to clients. Weston with the experience we have had working College fits perfectly with that ambition as with Weston College, from the personal the location is ideal for those on our early service we get with the Account Manager careers and apprenticeships programme. and Work Placement Officer, to the recruitment support we have had from the We also wanted to strengthen our Apprenticeships team. relationship with the community and provide WHAT ARE SWEET CONSTRUCT’S FUTURE high-quality employment for the local area. We selected Weston College because we are AMBITIONS? We plan to continue to grow and develop confident their apprenticeships would be the perfect way to recruit new employees, as our early careers and apprenticeships programme, and will continue to work well as to upskill existing colleagues. closely with Weston College, notably WHAT IMPACT HAS THE PARTNERSHIP incorporating the Construction Manager HAD? Apprenticeship (level 4) into our plans for Through our partnership with Weston future pathways to site management roles. College we have employed apprentices from We also look forward to engaging on the new intermediate (level 2) through to higher T-Level programme and welcoming a digital apprentices (level 4) and have another work placement student later in the year. due to start in September. The people that These are exciting times for Sweet Construct come to us from Weston College are highly and for construction in the region. We are motivated and skilled, backed by a support really pleased to be working with Weston team of tutors and assessors, and an College to achieve our ambitions for growth impressive range of apprenticeships and and recruitment of skilled, motivated diploma courses. teams. Overall, we remain extremely impressed 29
FEATURE
Shaping Britain’s next generation of entrepreneurs
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lack of specialist teaching means most UK teenagers leave school with little or no business knowledge. Business Leader talks to Sharon Davies, CEO of Young Enterprise, to learn how the finance and enterprise education charity is working to fill the void.
Entrepreneurs stimulate growth, create opportunity and drive innovation and social change – so why isn’t the UK education system doing more to develop these skills in future generations? Only a quarter of the nation’s Generation Z leaves school with any specialist entrepreneurial education under their belts, according to a recent YouGov survey, and as many as one in two go further, saying their education has failed to prepare them for the world of work. The impact is that young people lack both the nous and the confidence to embark 30
upon entrepreneurial careers – and at a time when UK business needs dynamic leaders, this is a major worry. ‘Crucial for Britain’ There is no quick fix, but the government is being urged to look at teaching reforms as a key first step. Sir Anthony Seldon is Vice Chancellor at the University of Buckingham, which has recently secured pioneering private sector support to match-fund fees on enterprise degree courses to make its business courses more accessible. He believes British politics needs to take notice of the challenge facing industry in the wake of Brexit, and says classroom investment is essential if the nation is to remain a global business power. He said: “As British business faces an uncertain future, it is vital that we support entrepreneurialism, and ensure Britain remains a world leader in enterprise and innovation. But to do this we must nurture our next generation to enable young
entrepreneurial talent to shine through. “For too long, entrepreneurialism has been deprioritised in schools and children have been taught to avoid risk. This is a mistake. “We urge Prime Minister Boris Johnson to get entrepreneurialism on the curriculum in schools and change the perception on enterprise education. Teaching enterprise in schools is crucial for Britain to have the edge in creating ambitious entrepreneurs.” That view is endorsed by Phillip Salter, founder of The Entrepreneurs Network, who agrees future success hinges on an improved education system. He said: “Despite political turmoil, Britain has continued to remain a global hub of entrepreneurship. However, for this to truly continue we can’t overlook key issues such as talent and nurturing young entrepreneurs. A strong start-up eco-system is key to economic growth and innovation in Britain, and to maintain this we must consider modernising school curriculums to encourage entrepreneurialism.” March - April 2020
NEXT GENERATION
‘A massive game-changer’ Delve a little deeper, and it becomes evident there is already a potential solution out there – albeit one which needs support from business to truly turn the tide. Young Enterprise is a national financial and enterprise education charity. Launched in 1962, it now helps more than 300,000 young people a year, supplementing their schooling with specialist business coaching – a service which extends to guiding schools and teachers too. At its head is CEO Sharon Davies, a passionate advocate of entrepreneurial education. Davies believes businesses must work with schools to reduce disadvantage gaps so young people can flourish in the corporate world. She said: “We have a belief that all young people should be able to access financial and enterprise education. “We provide opportunities for them to learn to earn and to manage their money, and to develop an enterprising mindset, which obviously is key. “We’re leaving the EU, and those skills are going to be absolutely pertinent to the future of this country.” Crucially, Davies knows first-hand how important support of this type can be.
She left home herself at 16, and ‘moved around a lot’ in a series of temporary jobs, before a chance encounter with a youth worker proved a major influence on her future direction.
"AS BRITISH BUSINESS FACES AN UNCERTAIN FUTURE, IT IS VITAL THAT WE SUPPORT ENTREPRENEURIALISM, AND ENSURE BRITAIN REMAINS A WORLD LEADER IN ENTERPRISE AND INNOVATION."
“There is support there for the teachers in terms of lesson plans and other support. We can provide online resources on how to utilise those programmes within the curriculum, and we also have volunteer business advisors, where a mentor can come in once a week or once a fortnight. “We want to bring influencers into the classroom, so children get a better perspective on what’s out there.”
Sharon Davies
Business Leader - Inspire • Inform • Connect
“We know there is a massive gap between what employers are looking for, and young people coming out perhaps not prepared for the world of work.
She said: “This youth worker was someone who was interested in me “What we’re trying to do is Sir Anthony Seldon developing myself, without really bring closer together any angles, and I had the world of learning and never come across anyone like that before; the labour market. someone who genuinely wanted me to do better, who believed I had some value in the “What we’re talking about is young people who are adaptable, creative, curious – world and that I mattered. they have the right attitude and the right “I felt that someone had given me a break, mindset.” and I continue to feel that this sort of ‘We can’t do it alone’ opportunity is a massive game-changer for At present, Young Enterprise is supported people.” by 6,000 volunteers and 3,500 businesses, ‘Bringing influencers into the classroom’ and operates in around 40% of secondary Young Enterprise’s contemporary activities schools in England and Wales. are varied and evolving. However, it has clear ambitions to extend Its Company Programme gives students that reach. A new three-year strategy – real-life experience of setting up and called No Time Like The Future – is aiming running a company, and its Tenner high. Challenge encourages them to be creative “We want to deliver a million learning and resourceful in growing their cash. opportunities for young people to get that opportunity to build a bright future,” says Private sector support is available, as is Davies. “To do that we will need to mobilise backing and resources for teachers, while 40,000 volunteers, teachers and alumni, there is also a wide range of digital assets and we will need to secure an investment available to ensure its reach is not limited of £16m. by geography. “We try to work with the school to establish what it is they are looking for,” says Davies.
"WE WANT TO DELIVER A MILLION LEARNING OPPORTUNITIES FOR YOUNG PEOPLE TO GET THAT OPPORTUNITY TO BUILD A BRIGHT FUTURE"
corporates we work with, so the skills those young people are developing are real-world applicable.
In essence, it’s all about equipping young people with the tools and knowhow to thrive in the real world. Davies continues: “One of the biggest things is making sure we work very closely with our employment partners, the
“No Time Like The Future is really a positive opportunity for us to galvanise the country at a time when we are leaving the EU. “The potential we have got is to really develop a homegrown entrepreneurial pipeline of young people that are able to develop critical skills – adaptability, curiosity, creativity. “You can only do that if you invest in young people now. We can’t do that alone, we absolutely want the support of businesses, that’s key, and I would love to talk to any businesses that are interested in working with us to do that. “You’d get the opportunity to build the profile of your business, to professionally develop your staff, and you could have a direct impact on supporting young people to build a better future in your community.” 31
GROWTH
EXPORT
Why was 2019 a record breaking year for UK exports?
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ccording to new figures published by the Office for National Statistics (ONS), last year was a recordbreaking year for UK exports. Up until the end of December, the UK has experienced 45 consecutive months of annual export growth on a rolling annual basis.
UK companies exported £689bn worth of goods and services across the globe in 2019 – up by 5.0% on 2018. Some of the UK’s fastest-growing goods exports include cereals, which were worth £2.5bn, up by 16.6%; fish and shellfish, which were worth £2.1bn, up by 13.1%; and meat and meat preparations, which were worth £2.1bn, up by 12.4%. Secretary of State for International Trade, Liz Truss, said: "The UK is an exporting superpower and these new statistics show UK companies are exporting record levels of goods and services. As a newlyindependent trading nation, we will strike new trade deals with key partners across the world, open up new markets and make it even easier for our businesses to meet global demand." Goods exports to non-EU countries grew by 13.6% in the lead-up to Brexit. The value of British goods sold to countries outside of the EU increased throughout 2019, according to Lloyds Bank Commercial Bank. The increase helped offset the falling value of UK exports to the continent. While analysis of the latest trade figures from HMRC revealed the EU is still the UK’s single largest trading partner, the value of British goods exported to the continent fell from £173.3bn in the year ending Q1 2019 to £168.5bn in the year ending Q3 2019, 32
according to the Lloyds Bank International Trade Index. Prior to this, the value of UK goods exported to the EU had grown consistently since 2016. The index, compiled in partnership with IHS Markit, showed the UK sold £177.1bn of goods to markets outside the EU in the year ending Q3 2019, up from £170.9bn in the year ending Q1 2019. Accounting for the trend, the report shows over the past three years, UK exports to Asia and the USA have grown at a compounded rate of 11.3% and 7.7% respectively, while new exports orders to the EU grew by just 6.9% per year. The value of British exports to the UK’s top ten markets in Asia grew over the same three-year period. Whisky and spirits exports grew rapidly, with sales to Vietnam and India increasing by 204% and 73% respectively. The Lloyds Bank International Trade Index also found economic contraction in Europe contrasted with the performance of countries outside the EU in the final quarter of 2019, highlighting further opportunities for UK exporters in far-away markets in 2020. Gwynne Master, Managing Director and Global Head of Trade for Lloyds Bank Global Transaction Banking, said: “It’s encouraging to see that UK exporters aren’t limiting
themselves to markets close to home. The fluctuating economic environment could prompt more businesses to take advantage of a diverse range of overseas markets, which in turn will hopefully enable increased sales and revenue for UK exporters. “Last year, tension between the world’s biggest economies undoubtably had an impact on global trade. Productive talks and a new deal between China and the US signed last month could represent the start of this tension dissipating, creating further opportunities for UK exporters.” According to IHS Markit PMI (economic indicators derived from monthly surveys of private sector companies) data, the economies of Germany and the Netherlands – two of the top five destinations for UK exports – softened for the first time in more than six years. Germany’s PMI for Q4 2019 was 49.7, down from 50.3 in Q3, while the Netherlands saw an index of 48.5 in Q4. Weaker economic conditions were also recorded in Italy, Austria, Poland and the Czech Republic (49.8, 46.8, 45.9, 44.8). A reading of above 50 indicates growth, while one below 50 signifies a decrease. Meanwhile, economic growth was measured in the USA (51.9) and China (52.6), and across Asia (51.1) between October and December.
March - April 2020
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REPORT
HOW TO LAUNCH YOUR BUSINESS IN
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or our latest business trip feature, where we look at the UK’s most interesting export markets, Business Leader Magazine gives you an in-depth guide into everything you need to know about doing business in Japan.
The Land of the Rising Sun has for decades been one of the world’s leading economies and is currently third on that list, with only China and America boasting a larger GDP. In the past year, Britain has become a more prominent trade partner and a recent report by the Office for National Statistics (ONS) revealed an increase in trade with Japan, rising by 7.6%, from £13.8bn (2018) to £14.8bn (2019). Japan is already the UK’s 11th largest trading partner and one of the world’s fastest-growing markets. The government has made it public that one of its main goals post-Brexit is to strike a new Free Trade Agreement, which would solidify and expand the nations' business relationship. So, with a strong trade history and a public commitment to build on the partnership between the nations – is now the time to expand your company’s operation into Japan? 34
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The Britain-Japan relationship British businesses are currently benefitting from record levels of trade with Japan, with exports continually rising over the past three years. One of the thousands of companies that have found success in Japan is Londonbased Shadow Robot Company. The firm is Britain’s longest-running robot company and winners of the Queen's Award 2019 for Innovation. The company produces the world’s finest anthropomorphic dexterous robotic hands, which have been used as a testing tool for artificial intelligence and machine learning, as well as in research and development at Tokyo and Akita universities. Shadow Robot is currently participating in a development project with a Japanese corporation that has already brought in £500,000 and is expected to do the same over the next six months. Rich Walker, Managing Director of the Shadow Robot Company, said: “Japan is a key target market for us. There is a solid business culture and the country has a great respect for investing in exciting and cutting-edge technology, such as that used in our products. We have found the nation takes a very long-term view of business and it is refreshing to see how Japan is open to exporting innovation and expertise from abroad.
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“The business relationship between the UK and Japan is certainly strengthening, as both are leaders in the field of innovation and both recognise the importance of cooperation in providing innovative solutions to global problems. It’s a model of continuous development and needs ongoing commitment from both parties.” But it isn’t just recent opportunities that have made Japan a commercially viable nation to export to. Greg McDonald, Managing Director for Japan at TMF Group, comments: “The UK and Japan share a centuries-long business relationship that is supported by a strong political relationship. This has formed an excellent base for increased cooperation in recent years. "Both island nations, despite being relatively short on natural resources, have been able to propel themselves by creating economies based on knowledge and technology.” Why should you start working in Japan? Both nations have made it clear they are carrying on and developing their business relationship into the future. With political partners on both sides publicly promoting a bright future for trade, now is the time to break through the Brexit blues and set up a business function in the Far East. McDonald comments: “Japan is a mature March - April 2020
INTERNATIONAL TRADE
Rich Walker Shadow Robot Company
and stable economy with a strong rule of law. It is still the third largest economy in the world and there remains plenty of opportunities for this reason. It also has a high level of technology, a well-educated workforce and strong infrastructure to support business. "The government is also focused on improving the country as a destination for regional headquarters and hubs.”
"BOTH ISLAND NATIONS, DESPITE BEING RELATIVELY SHORT ON NATURAL RESOURCES, HAVE BEEN ABLE TO PROPEL THEMSELVES BY CREATING ECONOMIES BASED ON KNOWLEDGE AND TECHNOLOGY.” Greg McDonald
Business Leader - Inspire • Inform • Connect
Greg McDonald TMF Group
However, due to Japan’s position as one of the world’s top economies, British companies looking to navigate a way through the challenges can achieve incredible success.
country rather than approaching it alone.
Walker comments: “Companies looking to have operations in Japan can expect an exciting defining moment for their business, seeing as Japan is an innovation powerhouse. Japan is the world’s thirdlargest economy and, in the last year alone, trade between the UK and Japan was worth £29.5bn.
What sectors are most prevalent in Japan? Clearly tech is one of the most prominent sectors that comes to mind when thinking of Japan, but there are many other areas of Japanese business which could be fruitful for British companies looking to expand overseas.
“Overall, the nation takes a very long-term view of business and it is refreshing to see how Japan is open to exporting innovation and expertise from abroad.”
“Having said that, expect to market your product differently, geared towards Japanese customers considering the language and cultural differences. "It might be worth approaching this market through a sound collaboration with a company that is well established in the
Cont. 35
REPORT
INTERNATIONAL TRADE
According to Export to Japan and TMF Group, after technology, UK companies which have achieved the most success in Japan come from automotive, energy, manufacturing, aerospace, scientific, financial/professional services, media, retail, healthcare and food & drink sectors. Latest figures from ONS show Atlantic salmon exports to Japan were 1,060 tonnes, worth £8.7m in the 12 months to October 2019; an annual increase of over 71.8%. One business taking advantage of growing demand is The Scottish Salmon Company. The Edinburgh-based firm has recently secured a deal to supply Japanese sushi chain Genki Sushi with its brand, Tartan Salmon. Su Cox, Communications and New Business Development Director for The Scottish Salmon Company, said: "Japan and the Far East is a key market and demand for our salmon has helped drive a 25% increase in our exports to the region over the past year. We expect this to increase as more consumers discover this fine Scottish product and experience the "JAPAN AND THE great taste and provenance FAR EAST IS A KEY of our quality Tartan Salmon. Our recent success with MARKET AND DEMAND Genki Sushi is testament to FOR OUR SALMON this. We take great pride in our Scottish heritage, and this HAS HELPED DRIVE A 25% INCREASE IN is demonstrated through our commitment to bringing the OUR EXPORTS TO THE finest quality Scottish salmon REGION OVER THE to worldwide markets."
PAST YEAR.”
However, electronics and technology are still the main export opportunities for British businesses looking at expanding into Japan. What are the main challenges of working in Japan? Regardless of the success in its prominent sectors, Japan is in the midst of several economic and employment difficulties. McDonald comments: “Japan has a rapidly-aging society with a very high unemployment rate, which can make hiring a challenge, especially staff with strong English skills. There also exists several regulatory and licensing requirements, depending on the industry, that many companies may not face in their own jurisdictions. 36
Su Cox
Su Cox Scottish Salmon Company
"These headaches can be varied and complex – but are not insurmountable, so long as local expertise can be procured. For example, many legal and banking processes still rely on traditional methods such as seals, original certificates and hard copies of notarised documents, which adds to the administrative burden. An unwary foreign firm can find adaptation to these processes extremely difficult.”
Walker continues: “One of the main challenges for companies looking at doing business in Japan is that competition can be fierce, especially if your market is reasonably well served by other local providers. There are language, business and cultural challenges too but luckily for Shadow, we had support from our Japanese distributor, Nihon Binary, and the Department of International Trade (DIT) through various language, culture and distance barriers.” What does the future hold? Despite the positive business relationship and a commitment to strengthen trade
Dr Kerstin Braun Stenn Group
ties between the nations, there are many different challenges for British companies looking at expanding their operations into Japan. Following the news that Japan's economy shrunk at a 6.3% annual rate, and with the potential of the coronavirus to impact the prospect of a global economy, Dr Kerstin Braun, President of Stenn Group, comments: "The news that Japan's economy shrank by 6.3% in the last year is a worrying sign if you are looking for an indicator of the health of the global economy. Japan boasts the third largest economy in the world, so if it contracts again in the next quarter, they will be staring down the barrel of a recession. “Given the impact the coronavirus has had on the global economy, it is hard to see this being avoided. Already we are seeing Japanese supply chains being hamstrung across the automotive sector. "The Chinese are also a major driver of the global tourism market, contributing to 15% of global spend on tourism. Coronavirus has already led to clear evidence that the Chinese will be travelling less, and this will have a clear impact on the global economy in the months ahead."
March - April 2020
FEATURE PRODUCTIVITY
PRODUCTIVITY CRISIS IS THE UK’S ‘LOST DECADE’ AT AN END?
A
n ‘unprecedented’ slowdown in UK productivity has stifled ambition and growth – and tackling the issue must be a priority for both industry and government, according to business leaders.
It’s been more than ten years since the global financial crash, but its effects are still being felt – not least, in the UK’s stagnant levels of productivity. "It has taken the UK a decade to deliver 2% growth, which historically was achieved in a single year,” says Richard Heys, Deputy Chief Economist at the Office for National Statistics (ONS). Experts say the slowdown has had an ‘unprecedented’ impact on the nation’s output – but is there any solution in sight for the UK’s ‘productivity puzzle’? What’s the problem? It’s difficult to overstate the importance of Business Leader - Inspire • Inform • Connect
productivity for a company, a sector, or even a nation. It’s a line oft-quoted, but Nobel Prizewinning economist Paul Krugman once said: “Productivity isn't everything, but in the long run it is almost everything. A country's ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker.” Yet that is a challenge which has been firmly beyond the UK over the past decade. ONS data reveals labour productivity has been lower over the past ten years than at any time in the 20th century – but in truth, the UK’s ‘lost decade’ compares unfavourably with other eras from even beyond that timeframe. Nicholas Crafts, of the University of Sussex, and Terence Mills of Loughborough University, are two of the country’s leading economic historians, and their joint research reveals the current downtown is actually the worst the country has ever faced.
Their analysis compares today’s picture with past economic slumps, and reveals not only how much has been lost, but also casts light on the underlying reasons. They said: “We find the current productivity slowdown has resulted in productivity being 19.7% below the pre-2008 trend path in 2018.
"JUST ABOUT THE ONLY WAY TO IMPROVE THE UK’S STANDARD OF LIVING AND THEREBY CREATE THE KIND OF SOCIETY TO WHICH WE ALL ASPIRE IS BY RAISING THE LEVEL OF OUTPUT PER WORKER. THAT’S WHY WE MUST STRAIN EVERY SINEW TO INCREASE BRITISH PRODUCTIVITY.” Sir Richard Lambert, Chairman, British Museum
Cont. 37
FEATURE “This is nearly double the previous worst productivity shortfall ten years after the start of a downturn. “On this criterion the slowdown is unprecedented in the last 250 years. We conjecture that this reflects a combination of adverse circumstances, namely, a financial crisis, a weakening impact of ICT and impending Brexit.” With increased clarity on the Brexit issue, at least, there could be some encouragement looking forward. Most recent quarterly productivity scores show 0.3% growth – recovering the -0.2% and -0.1% losses of the previous two quarters. But Heys said: “UK productivity has moved very little over the past 18 months, with quarterly fluctuations broadly cancelling each other out. “Over the longer term, growth in productivity remains much slower than before the economic downturn of 20082009.” What’s needed? Where to start? Courage, impetus and investment from both public and private sectors will all be needed to inject fresh momentum – but none of this comes easy. However, the reward for remedying this issue is huge, according to Alex Tuckett, Senior Economist at global accountancy firm PricewaterhouseCoopers. He said: “Evidence suggests this productivity shortfall is due to low levels of investment and R&D spending and a longer tail of companies and workers with relatively low productivity and skills.
“The economic prize would be significant if the UK were to close the per-worker gap to German levels, for example. This could see the UK economy grow £180bn per year larger – £5,800 for each worker in the UK.” PwC Partner Phillippa O’Connor says this requires action from all levels of business. She said: “We believe leadership and management practices play a central role in unlocking this puzzle. But equally important is the impact of the individual; their engagement, wellbeing, digital literacy, and their interaction with the workplace environment. “Combined, these enable individuals to be their most productive self. “Even simple changes can make a material impact. It’s not an easy task, but business has much to gain from getting it right.” Government influence While businesses can certainly shape their own destiny, momentum to positively impact productivity on a national level arguably begins with government – a view shared by many within the business community.
Suren Thiru, Head of Economics at British Chambers of Commerce, acknowledges productivity problems run deep, but says the government must accept responsibility for finding solutions. He said: “Tackling the UK’s low productivity growth means addressing the deep-rooted problems in our economy. “Critical skills shortages, underinvestment in our infrastructure and a challenging domestic business environment continue to hold back growth. “Alongside clarity on the future trading relationship with the EU and partners across the world, the government has an important opportunity to improve the business environment here at home.” The imminent Budget – the first by Boris Johnson’s government since the December election – will be vital, says Thiru. He continued: “The Budget should include a moratorium on new upfront costs and initiate a long-awaited review of the broken business rates system to help companies manage their cashflow and invest in growing their businesses and the wider economy. Extending the current £1m Annual Investment Allowance for a further two years would give firms the confidence to push ahead with investments and boost productivity. “Investment in infrastructure should also continue apace. The commitment to get on with HS2 is welcome, and we now look forward to seeing it delivered in its entirety alongside other key regional rail projects to connect businesses with customers, supply chains and labour markets.”
“The UK has the third lowest investment rate in the entire OECD and low R&D spending – at just 1.7% of GDP it is below the EU average of 2.1%, behind France and Germany and barely half the level of Sweden.
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March - April 2020
PRODUCTIVITY Tej Parikh, Chief Economist at the Institute of Directors, agrees. He said: “Productivity growth remains a weak point. The UK economy ended 2019 in a funk, and despite a recent rise in optimism, businesses will be looking for a significant boost from the Chancellor. “Firms entered 2020 with more of a spring in their step. Confidence has shot up, while hiring plans and investment intentions have also risen a notch, but the post-election bounce may tail off. “Uncertainty from the next stage of Brexit negotiations will increasingly play on the minds of business leaders. Meanwhile, ongoing hiccups in global growth, including the fallout from coronavirus, could eat into the economy if global financial markets and trade slow. “This makes the Budget a crucial moment to get the economy moving. The Chancellor must clear the way for entrepreneurs to create jobs and drive up productivity, by unleashing investment in start-ups, slashing business rates, and revamping our skills system. “The Budget must focus on providing business investment incentives and boosting skills across the country if productivity is to pick up any time soon.” Mike Cherry, National Chairman of the Federation of Small Businesses, says the Budget is an opportunity to deliver long-overdue clarity and support for UK business. He said: “Small firms have been desperate for certainty for years and will look to the upcoming Budget as an opportunity to help them grow and succeed. “After years in the doldrums, the new Chancellor must illustrate his support for the small businesses that form the backbone of the British economy. “It’s vital that the cost of doing business, specifically when it comes to business rates, protecting incentives to grow, and accelerating the delivery of key infrastructure commitments, are delivered sooner rather than later.” Business Leader - Inspire • Inform • Connect
And it is that delivery of infrastructure which is viewed as key to ensuring any upturn in productivity impacts nationally, instead of being concentrated in certain regions. Parikh said: “The chasm in productivity across the UK’s regions and nations is holding back our economy. “The Prime Minister has talked about ‘levelling up’ the regions. Longoverdue upgrades to broadband, rail and roads will be crucial, but the government also needs to create the conditions for companies to take risks and innovate today to raise our game on productivity and sustainability. Boosting investment in new and growing firms is key, as is ensuring they have the skills they need to thrive. “Without significant investment outside London and the South East, the rest of the country will continue to lag behind, eating into the UK’s overall potential. “More funding should go toward developing our regional skills systems, and enhancing the role our world-class universities play in local economies can be starting point. Upgrading local road and rail links and our digital infrastructure must be a priority, alongside enhancing connections between our towns and cities. “(But) the benefits of big-ticket infrastructure improvements, although crucial, won’t be felt immediately. We need greater regional investment incentives for new and growing firms to help catalyse innovation and jobs growth in the here and now.” What next? “Lingering uncertainty and domestic cost pressures are likely to limit longerterm investments in new machinery or technology,” warns Thiru. “With business investment expected to remain weak, UK productivity is set to remain sluggish over the near term.” And that view is broadly shared by the Bank
of England’s Monetary Policy Committee (MPC), which is predicting growth at last – albeit on a moderate scale, while Brexit details are still to be finalised. It predicts a 0.75% growth for the coming year, rising to 1% by 2021 – an encouraging step in the right direction, though still well short of the 2.25% experienced pre-crisis. The committee said: “The MPC judges that productivity growth will pick up a little over the forecast period, but will remain well below its pre-crisis pace. That limits the rate at which the economy can grow without putting upward pressure on inflation. “The MPC’s projection of subdued productivity growth reflects a continuation of the post-crisis trend, recent weakness in business investment and the reduction in openness that occurs as the UK economy adjusts to its new trading arrangements with the EU.” 39
EVENT AND CONFERENCING
11 TOP TIPS for picking the perfect event venue
I
t’s a big night – your biggest of the year. You’ve spent months planning every tiny detail, and you’re confident everything is set… but then the venue lets you down in a way you could never have foreseen. Or could you?
Ask any event planner, and they will tell you that the venue you choose will be the key factor in ensuring the success of your occasion. It really is a make or break decision. That means it is a decision you must get right. But there are plenty of things you can do ahead of the occasion to make sure all goes according to plan. Consider your image. The venue you choose must reflect both your brand and your intentions for the event. If you’re hoping to woo new clients or reward bigspending customers, you’ll be looking for a wow factor. There’s no point opting for the bottom-end of the market and hoping a few balloons and other cosmetic touches will mask its shortcomings. Budget carefully. Compare event packages carefully, and remember to check what’s included and what isn't, as that will vary from venue to venue. Extra costs can 40
include everything from audio and visuals to corkage and staging rooms, so don’t get blindsided.
relationship, as well as spelling out your expectations for service levels and on-theday support.
Haggle. It’s not just about the bottom line – and even once a price is agreed, there’s often a chance to secure some cutprice bolt-ons, such as discounted rooms, reduced fees for spas and services or partner businesses and attractions, which is a nice extra for your guests.
Consider external help. Most venues will be experts at setting up and running events, but if you need something really special – perhaps in terms of AV or lighting – you may want to bring in an even higher level of expertise.
Visit wisely. Naturally you’ll visit to run the rule over any potential venue, but picking your moment can pay dividends. Can you take a look at a similar event in full-swing, perhaps? At the very least, you should pick a busy time of day relevant to your own planning. Look behind the scenes. Everything looks great front-of-house, but if your team needs a staging area or breakout space, make sure you check this is both available and suitable. Test the tech. Whatever you’re planning on, the night needs to be thoroughly tested to ensure compatibility with any in-house kit you plan to use. A thorough run-through is essential to guarantee your expectations are met. Meet the team. Who will be managing the venue team on the day of your event? Make sure you’ve met them and built a
Taste. Everyone’s favourite job! If your event includes food, this part is vital. The venue’s menu may look great on paper, but don’t risk any nasty surprises on the night. Make sure you get a taste of what’s on offer so you can assess its quality and suitability. Check capacity. Of course you’ll have a firm idea of the number of event delegates you plan to invite, but capacity is not just about daytime seating. If attendees want to stay the night too, can your venue cope? They won’t be impressed if they face an end-of-night trek to another hotel. Transport and parking. Does the venue have dedicated parking, or is there public provision nearby? Is it near a train station, or even an airport, if relevant? Make it easy for your guests to reach your venue, and they’re more likely to attend – and enjoy themselves.
March - April 2020
No More Bored Meetings. Meeting rooms don’t have to be just for work – our flexible spaces are yours to use how you like. holidayinn.com
Excellent Locations. Superb Service. Competitively Priced. Holiday Inn Bristol City Centre • Meetings Academy with 7 flexible function rooms. • Catering for up to 260 delegates. • Complimentary AV equipment & Wi-Fi. • Complimentary car parking. • Conference café & event desk. • 155 modern & spacious bedrooms. • Location; Superb central Bristol location. 0.5 miles from M32, 1.5 miles from Bristol Templemeads, 9 miles from Bristol Airport.
Holiday Inn Bristol Airport • 2 flexible function rooms for up to 60 delegates. • Ideal for meetings before & after flights. • Complimentary AV equipment & Wi-Fi. • Complimentary car parking. • 80 comfortable bedrooms. • Airport Shuttle Bus. • Location; Superb airport location. 3 miles from Bristol Airport, 10 miles from Bristol City Centre.
Holiday Inn Bristol City Centre Bond Street, Bristol, BS1 3LE Tele: 0117 924 5000 www.hibristolcity.co.uk meetings@hibristolcity.co.uk
Holiday Inn Bristol Airport A38 Bridgwater Road,Bristol, BS40 5RB Tele: 01934 861 123 www.hibristolairport.co.uk meetings@hibristolairport.co.uk
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41
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March - April 2020
If you’re on the lookout for a unique and refreshing change to your corporate event venues, look no further than Longleat.
N
estled in the rural countryside on the border of Somerset and Wiltshire, Longleat is an astonishing kingdom ready to impress.
The Great Hall
Within Longleat’s historic House, choose from the intimate Green Library, the grandiose Great Hall or the elegant Banqueting Suite for your next meeting, conference, dinner or reception. Perhaps you have something larger in mind – discover The Longhouse; a purpose built event facility in the heart of the Park, suitable for up to 500 delegates. With its own kitchen, washrooms, theatre-standard lighting and AV equipment, green room, bi-fold external doors, staging and over 665m2 of open floor space, The Longhouse is a blank canvas, ready to host your extraordinary event.
The Green Library
The Longhouse
Of course, much of Longleat’s
Safari tour. You could even book
charm comes from its huge animal
an exclusive Jungle Cruise voyage
collection. From majestic African
and have Half Mile Lake, home to
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and gorillas, completely
Longleat is home to a world of
to yourselves.
animals who can become part of your big events. Bolt on an up close, behind the scenes encounter or team building activity for your delegates, or a VIP Land Rover
Business Leader - Inspire • Inform • Connect
Explore the Longleat for Business packages online at longleat.co.uk/business or contact the team sales@longleat.co.uk or 01985 844328
43
PROPERTY FEATURE
HOW HAVE MIXED-USE DEVELOPMENTS CHANGED UK CITIES?
M
ixed-use developments are becoming prominent and increasingly iconic parts of cities across the UK – but how are they different? Are they having a positive impact and what does the future hold for them? Business Leader investigates.
Wapping Wharf - Bristol Wood Wharf - London
With ongoing issues affecting the high street, affordable housing and the environment – could mixed-use developments provide solutions to these challenges? In the UK, these developments are creating ‘destinations’, improving the local economy and repurposing abandoned or disused areas into urban, multi-purpose districts. What are mixed-use developments? The idea can be summarised as destinations predominantly found outside city centres, where retail, working and housing environments are all set within the same development. However, an increasing number of these are regenerating city centres too. With the hyper-competitive clamour for premium development spaces across the country, mixed-use has been hailed as the perfect alternative to purely retail or housing developments – and with the ongoing difficulties each industry is facing, this type of development can create an ecosystem where retail, working spaces and housing can support each other.
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March - April 2020
MIXED-USE DEVELOPMENT
As demand grows for space in cities across the UK, local government, developers and retailers are working together to create the future of urban developments. The residential aspect of mixed-use developments is the main value driver. By getting the right mix of retail, restaurants and repurposed land, the value of properties can be drastically increased. When compared to traditional city centres and high streets, where retail-heavy areas are going through major challenges, a mixed-use development provides an experiential environment for people to live, work and be entertained. Stuart Hatton is the Managing Director of Umberslade, the developer behind Bristol’s Wapping Wharf, a mixed-use regeneration scheme that has transformed the harbourside area in the city. He said: “Residentially-led mixed-use development is all about creating places people want to be. At Wapping Wharf, it’s been integral to our approach in creating this thriving new neighbourhood of homes, shops, eateries and other businesses. In the early stages, I sat down and thought: If I lived here, what would I want on my doorstep?” Many developers have also turned mixeduse into a way of not only getting planning permission for larger or higher quality homes – but also a way to increase the value of them and the surrounding area. What benefits do they provide? It is the experiential factor that has really led to the explosion of developments across the UK – as the modern retail consumer demands more from their shopping experience.
"RESIDENTIALLY-LED MIXED-USE DEVELOPMENT IS ALL ABOUT CREATING PLACES PEOPLE WANT TO BE. AT WAPPING WHARF, IT’S BEEN INTEGRAL TO OUR APPROACH IN CREATING THIS THRIVING NEW NEIGHBOURHOOD OF HOMES, SHOPS, EATERIES AND OTHER BUSINESSES." Stuart Hatton
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In any business, if you are not providing the market with what it wants then you won’t last long. This can be seen happening on many high streets, where retail premises that are not fit for purpose are either vacant or are being repurposed for uses other than retail such as offices and residential.
can strengthen the overall economies and health of town centres. Town centres with strong economies, services and activities can be attractive for multiple generations and more appealing for people to live, work and spend their leisure time within central locations.
People still like shopping, but rather than simply making a purchase, they want to have an overall shopping experience that is enjoyable and engaging from start to finish. Therefore, a welcoming retail environment is essential.
“In order to have a future place in the shopping hierarchy, many traditional retail destinations will need to become multipurpose destinations that combine retail, leisure and eating out into their tenant lineups in order to attract additional customers and achieve sustainable economic growth. These trends confirm that diversification and the attraction of a mix of uses (in addition to retail) are necessary if traditional town centres are to achieve a viable and sustainable future.”
Nick Turk, Director in the Retail Agency Out-of-Town team at Colliers International, comments: “People don’t want a shopping trip that begins with having to pay to park somewhere that feels overpriced, dingy and threatening. They want to be able to shop in a place where they can also have a decent coffee and good food, or take the kids to a soft play, or have aspirational experiences such as sampling perfumes in a stylish cosmetics area. “Mixed-use is repurposing retail for the modern market, and is offering a more experiential way of shopping that appeals to today’s consumer. Mixed-use meets the desire of modern shoppers to go beyond the transactional to the experiential.” However, the benefits are not just limited to the desires of the experiential shopper. Chris Pickup, Associate Director at national planning and development consultancy Turley, comments: “The benefits of encouraging the diversification of uses in town centres is that they can help to bring residential uses back into centres, provide development land in sustainable and accessible locations particularly around transport hubs, they can be multi-generational and healthy places to live and can also be the focal point for public and private sector investment. “Mixed-use centres benefit from increased footfall and expenditure, which create consumer markets for retail, services, food and beverage and leisure activities which
And the positive environmental impact of mixed-use has created a strong desire from developers and local government to make these destinations more commonplace in the UK. Yuli Cadney-Toh, Architect Director at international architectural firm BDP, comments: “Mixed-use also has the potential to drastically reduce our reliance on transport, because you can live, work, learn, shop and enjoy your leisure time all within your neighbourhood or within walking or cycling distance. In simplest terms, mixed-use gives agency back to people – they can have far greater influence over purpose of urban space, which in turn is opening up new design possibilities and ultimately will transform the look and feel of our towns and country.” Impact on retail It is clear that mixed-use developments are filling a gap left in the wake of the current housing and high street struggles. However they are also providing solutions to some of the UK’s wider societal issues. Turk comments: “Mixed-use is solving many issues because there is too much retail space in the UK – especially in high streets and shopping centres. In order to attract shoppers it is vital to move beyond purely retail space and instead create desirable destinations which have attractions other than just retail. Cont. 45
FEATURE
“Mixed-use centres will provide some solutions to these problems. Some properties are simply not suitable but can be re-purposed to other uses. This is especially true of retail warehouses which – despite being the most resilient retail sector given their ability to work well with online shopping and free parking etc – can be attractive for residential and last-mile delivery uses because they are well located and easy to repurpose.” Once, a trip to the city centre was all about shopping, but as e-commerce continues to grow and retailers reassess their use of space, city centres are offering a more diverse mix of amenities that better cater for modern urban lifestyles.
"MIXED-USE IS REPURPOSING RETAIL FOR THE MODERN MARKET, AND IS OFFERING A MORE EXPERIENTIAL WAY OF SHOPPING THAT APPEALS TO TODAY’S CONSUMER." Nick Turk
In the past few years, many British retail institutions have gone out of business – with plenty more in deep financial troubles. However, this has opened the door for fresh offerings from local and smaller businesses. Rebirth of the high street This rejuvenation of city centres and disused areas has had the knock-on affect of giving a new lease of life to the high street. Also, with retail habits evolving and the influence of millennials wanting destinations to live, work and be entertained – the future looks a lot brighter. Also, as smart city applications become increasingly desired it will become easier to analyse and implement technologies to make our immediate environment more appealing to residents and increase footfall to the area. Mixed-use developments are under construction across all major cities throughout the UK – and are already complementing the current developments open to the public – meaning many regions have seen a rebirth. However, more needs to be done.
Pickup comments: “The state of the existing retail market stresses the importance of being able to find new ways of retailing and alternative land uses to be developed within town centres to keep them vital and viable destinations. Planning policy can move at a slow pace and often takes a while to react to changing market conditions. Some councils have policies in place which prevent the loss of A1 retail floorspace and restrict alternative mixed-uses from being the focus within town centres – this needs to change in order for centres to adapt to what is happening in the market. “In order to attract more shoppers and generate additional footfall, it has become necessary for operators and owners of town centre assets to provide a more interesting and varied experience so that consumers can enjoy a full day out or a shopping trip extended by leisure and dining. "Increasingly, it has become necessary to incorporate broader leisure facilities to act as additional attractions and backfill space left vacant by failed retailers. This has led to a growth in facilities such as cinemas, bowling alleys, trampoline centres, mini-golf and 24-hour gyms, and other varied leisure activities within town centre locations, which previously would have been occupied solely by traditional retail operators.” Refashioning areas of independent retail or housing to city neighbourhoods will transform housing, leisure and working environments for the better – as it meets the needs for the modern person living in a city.
"MIXED-USE DEMAND HAS COME OUT OF THE PEOPLE EXERCISING GREATER AGENCY TO INFLUENCE, BUT THIS IS A CHALLENGE FOR THE INDUSTRY TO DELIVER, WHICH IS WHERE TECHNOLOGY COMES IN." Yuli Cadney-Toh
Circle Square - Manchester
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March - April 2020
MIXED-USE DEVELOPMENT
Simon Peacock, Lead Director at real estate advisors JLL in the South West, comments: "The location of old department stores and large shops are often ideal for other uses such as much-needed homes, offices, hotels, restaurants, cafes or bars. "Our city and town centres need to become places for people to live, work, shop, eat and relax, adding diversity and bringing people in. A mixed-use approach is the direction of travel, signifying the end of an era where urban areas were zoned according to use.” What does the future hold? In the future, town centres will be tech-rich destinations for mixed-use purposes, that reinvent transport and retail hubs.
MIXED-USE DEVELOPMENTS AROUND THE COUNTRY
wappingwharf.co.uk Based on the harbourside in the city centre, Wapping Wharf is built on a former shipyard and dry dock. However, in 2003, Umberslade purchased it and kicked off the revitalisation of the entire area of the city. Home to its famous eateries and independent retailers – built in old shipping containers – as well as luxury retail and office space, this area has become a new focal point for Bristol.
By delivering an ‘experience’ rather than having these diverse components acting alone – as well as new creative uses for mis-used spaces – cities can flourish in a modern world. Cadney-Toh comments: “The problem-solving potential of mixed-use is actually much wider than the property and retail industry – helping cities and towns to transform, in everything from more homes, to community building, to placemaking and meaning for the new high street, and addressing climate change by multiuse of buildings to reducing our reliance on cars. “Mixed-use demand has come out of the people exercising greater agency to influence, but this is a challenge for the industry to deliver, which is where technology comes in. We are in a period of generational transition. Societies and cities that embrace this flexible, dynamic-based model will have the edge over those that are slower to change.”
woodwharf.com Having already created one of the largest business districts in Europe, Canary Wharf Group is continuing to evolve London’s former docks site by redeveloping a 23-acre site into five million sq ft of mixed-use space. A sense of community, education and culture are at the heart of these plans, which include two million sq ft dedicated to fast-growth businesses. Wood Wharf will attract a larger number of tech jobs than the entire city of Cambridge.
Pickup concludes: “If you invest in mixeduse town centre development, councils and developers are going to get more benefits than the initial investment in terms of spin-off benefits generated for local businesses and town centres as a whole. “The model quantifies additional expenditure generated by occupants, visitors and workers of mixed uses, including residential development, hotels, office and retail and leisure floorspace and calculates positive economic impacts. The outputs include jobs, wages, locally-available expenditure and discretionary spend to support existing or new town centre businesses.”
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circlesquaremanchester.com Circle Square is a new neighbourhood that will stand in the place of the former BBC site at the heart of Manchester. It will be delivered in three phases, with nearly two thirds in place by the end of 2020, including over 1,000 new homes, 400,000 sq ft offices, multi-storey car park, hotel, shops, restaurants, bars and more.
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Who is going to be the Elon Musk or Jeff Bezos that disrupts the construction sector?
T
o find out more about how the construction sector is performing nationally and what challenges and opportunities it is facing, BLM brought together a diverse panel of expert to talk about skills, innovation and the future of the sector.
WHAT CHALLENGES AND OPPORTUNITIES ARE YOU SEEING IN THE CONSTRUCTION SECTOR? Dieter Wood: "One of the trends we are seeing evolving fast is around sustainability. Our clients are increasingly seeing the climate and environment as a key stakeholder and there has been a change in appetite from our clients, from seeing it as a token box to tick to something that is now top of their agenda. "40% of total carbon output in the UK comes from buildings and the realisation is dawning on business leaders that they can do something about this. "It’s also worth noting that lots of funding that comes from abroad is looking at the environmental credentials of businesses." Ed Khodabandehloo: "Sustainability is becoming more of a focus for local authorities too and for results to be seen it needs to be a mix of both policy and clientled action.” 48
IS EMBRACING THE SUSTAINABILITY AGENDA SOMETHING THAT IS VIABLE FOR SME FIRMS, ALONGSIDE CORPORATES? Dieter Wood: "I would say that the change is being driven by SMEs because in the long-term a business will save money by embracing a sustainable agenda. You can see a world where you submit your annual accounts and you must show how you’re contributing to tackling sustainability. When you’re pitching for work, clients are becoming increasingly interested in this side of your business." Paul Williams: "It’s also not just about the building itself though but how the building is used by the tenant. A developer can create a BREAAM A or B rated building but if the occupier doesn’t behave correctly when they are inside, you will undo lots of that good work.” WHAT ROLE DO LOCAL AUTHORITIES HAVE REGARDING THE SUSTAINABILITY AGENDA? Sarah Jenkinson: "Many of my clients are local authorities and private landowners and you tend to see much of the discourse is about quick wins and short-term profits. It can be quite difficult to get some of our clients excited about defining standards and the sustainability agenda, when working in this environment. "That’s a big issue and it hasn’t been helped by central government removing the
concept of central standards when it comes to the construction of buildings. "Councils have set targets but aren’t necessarily aware of the how and how to deliver it. I think central government having defined targets around this would be very helpful both to businesses and local authorities and I think it would eventually wash through to the regions." Gemma Day: "A worry that I have is there is a danger that this type of thinking will happen in the city because it is being driven by policy and large clients but when you come out to the regions, this isn’t always the case. "Sometimes when we are pitching to clients, they aren’t often talking about sustainability and price is still the biggest driver." March - April 2020
FUTURE OF CONSTRUCTION Sponsored by ALBERT GOODMAN CHARTERED ACCOUNTANTS, TAX CONSULTANTS & FINANCIAL PLANNERS
Contributing most to our clients’ success
Weston-super-Mare 01934 642222 I Burnham-on-Sea 01278 788071 I www.albertgoodman.co.uk
@AG_LLP
The Panel Sarah Jenkinson Stride Treglown Mike Pinney CG Fry and Son Paul Richards Aquarian Cladding Systems Gemma Day Dowlas Matt Tyler Dowlas Amy McCormack ETM Contractors Ed Khodabandehloo Summerfield Developments Dieter Wood Interaction Ltd Paul Williams Avison Young Kelly Di Notaro Albert Goodman Mike Cahill Albert Goodman Simon Brewer Bridgwater and Taunton College
"REGARDING SUSTAINABILITY, FROM A TAX PERSPECTIVE FOR BUSINESSES, CREATING CLEAR PROCESSES AROUND INNOVATION AND SUSTAINABILITY CAN GIVE BUSINESSES AN OPPORTUNITY TO MITIGATE THIS AND IT’S WORTH KEEPING AN EYE ON THIS SPACE." Kelly Di Nataro
GEMMA – YOU MENTIONED ABOUT OPERATING IN THE REGIONS – CAN YOU ELABORATE ON THE TYPES OF ENQUIRIES YOU’RE RECEIVING? Gemma Day: "The region we operate in is so diverse that we get enquiries from many different sectors and this can make Business Leader - Inspire • Inform • Connect
it difficult to brand an area or a business park and create a specific identity, whether that is as a science park of technology hub for example. You end up having to brand each part of the business park to appeal to different businesses and sectors." WHAT ARE THE CHALLENGES AND OPPORTUNITIES YOU ARE FACING AS BUSINESS? Amy McCormack: "I would echo earlier comments about sustainability being pushed to the top of the agenda. For example, on the highways side of our business, we’re the main contractors for Bristol City council and we’re seeing a huge drive from the Council to use recycled aggregates which helps to reduce carbon emissions; and is also half the price of quarried aggregates.
"People talk about the cost of sustainability but often it is cheaper, and Bristol City Council has a huge drive to do this whereas BANES and North Somerset Council don’t seem to do so. "Regarding our new zero waste to landfill plant, we’re seeing contractors putting environmental performance ahead of price – whereas it used to be the opposite." Kelly Di Notaro: "Regarding sustainability, from a tax perspective for businesses, creating clear processes around innovation and sustainability can give businesses an opportunity to mitigate this and it’s worth keeping an eye on this space."
Cont. 49
DEBATE Sponsored by ALBERT GOODMAN CHARTERED ACCOUNTANTS, TAX CONSULTANTS & FINANCIAL PLANNERS
Contributing most to our clients’ success
Weston-super-Mare 01934 642222 I Burnham-on-Sea 01278 788071 I www.albertgoodman.co.uk
(L-R) Amy McCormack, Matt Taylor and Gemma Day
@AG_LLP
Paul Richards: "We import cladding from Europe – so we have had to deal with some significant headwinds such as Brexit and Grenfell. Post-Grenfell there has been an understandable clamour for non-combustible materials, together with a lack of understanding of how we got into this mess and how we get out of it. "When I set the business up 15 years ago none of this was on the radar, so you don’t put this into your SWOT analysis. "I’ve also been championing sustainability and using less materials in products for some time. I find that there is a huge investment and understanding in Europe about the benefits of sustainability and using materials that make a difference but not in the UK now, but this is starting to change.” Mike Pinney: "We’re a builder/developer based in Dorchester with the biggest part of the business being High End Development Housing but with our increasingly successful Contracting arm we have a significant foot in both camps regionally. "Environmental awareness is definitely high on the agenda and looming large, it won’t be long before you won’t be able to get on a tender list unless you can demonstrate your Pro-active environmental credentials.
(L-R) Kelly Di Notaro, Paul Williams & Dieter Wood
"There is also a bigger issue around contractors and supply chains. Contractors are going bust weekly partly because client/consultant teams are putting too much of the risk onto them with too little reward in return which is passed down the line to subcontractors who suffer the same fate. "I would also say that another issue is quality/standards, lobbying for lower standards has meant the removal of certain building standards leading to the current proliferation of cheap but poorly-built housing." HOW DO WE SOLVE THE ISSUE OF THE PRESSURE THAT IS PUT ON CONTRACTORS?
(L-R) Paul Richards & Mike Pinney
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"BUT WHAT WE’RE SEEING IS THAT UK MANUFACTURERS ARE STARTING TO COTTON ON THE IDEA TOO AND THE DIFFERENCE MORE SUSTAINABLE SOLUTIONS CAN HAVE." Paul Richards
Matt Tyler: "It starts with the client – they get an idea of what their budget is, and this is often influenced by their consultants, not necessarily the contractor. This results in constant pressure to drive down contractor and supply chain costs throughout the project, which creates incredible pressure on all involved. There needs to be far greater collaboration with contractors at the outset of each project to manage those budgets. "At 1% or 2% margin, if one client doesn’t pay you on, you’re on a knife edge. The construction sector has the highest failure rate in the UK with 3,000 businesses peryear going into administration.” March - April 2020
FUTURE OF CONSTRUCTION Sponsored by ALBERT GOODMAN CHARTERED ACCOUNTANTS, TAX CONSULTANTS & FINANCIAL PLANNERS
Contributing most to our clients’ success
Weston-super-Mare 01934 642222 I Burnham-on-Sea 01278 788071 I www.albertgoodman.co.uk
@AG_LLP
HOW DO WE SOLVE THE ISSUE OF SOME MILLENNIALS NOT WANTING TO FORGE A CAREER IN CONSTRUCTION? Simon Brewer: "Attracting not just young people but also new entrants into the sector is important but the question is how we do this? The big success we’ve had as a college has been with the SME community and mainly on the biblical trades. "We’re trying to bring down some of the issues around attracting and retaining talent and big infrastructure projects like Gravity and Hinkley Point have helped to do this by creating exciting opportunities for businesses and people looking to work in the sector. "One caveat though is that it is very difficult for training providers to invest these days – because there isn’t as much money in the system as there has been in previous years." Paul Williams: "I believe there are huge opportunities here to inspire young people to enter the sector. Our sustainability and innovation team are looking at how technology is going to impact our business and we invest in small start-ups in the sector as this is what is going to drive change. "We’re seeing lots of apprentices come through the business too. Typically, we
Business Leader - Inspire • Inform • Connect
During the debate
used to have a graduate intake but this changing." Ed Khodabandehloo: "But to be honest it is very different if you are a large Canadian consultancy business and you’re looking to attract young talent, compared to SME business in the sector that is looking to find people to dig holes on site and lay bricks. This is where we are seeing labour shortages." Paul Richards: "It is an issue at the entry level and there is a school of thought where we get kids interested in Bob the Builder, then Lego and finally Minecraft before they leave the industry. This happens when they get to secondary school, which shows me that there is something in the education system that is dissuading them from wanting to pursue a career in this sector." Mike Cahill: "I think we’re missing a trick as the construction industry is fast-moving, design-led and it’s highly collaborative and you can earn good wages, but it really is about communication. You get lots of
"ATTRACTING NOT JUST YOUNG PEOPLE BUT ALSO NEW ENTRANTS INTO THE SECTOR IS IMPORTANT BUT THE QUESTION IS HOW WE DO THIS? THE BIG SUCCESS WE’VE HAD AS A COLLEGE HAS BEEN WITG THE SME COMMUNITY." Simon Brewer
responsibility in construction too and you can be responsible for hundreds of people." WHAT WILL THE FUTURE HOLD FOR THE CONSTRUCTION SECTOR? Paul Richards: "As a conclusion, in this debate we have talked about modern technology and how the housing model is broken and I am thinking if there is a space in the industry for an Elon Musk or a Jeff Bezos to disrupt and revolutionise it; with offsite manufacturing potentially being one of the levers to do this.” 51
LEADERSHIP
SHAPING THE SOUTH WEST?
T
he South West is one of the UK’s richest regions in terms of tech innovation, with latest counts putting the area’s digital tech turnover at more than £2.4bn.
There are now 13,465 tech firms operating in the region, collectively employing some 78,000 people – each with a productivity equivalent to £87,000. But who are the people behind this boom? BLM today reveals the innovators, pioneers and visionaries injecting momentum into the South West’s tech scene. This list in no particular order.
01
ADAM SHARPE CARDSTREAM
Taunton-based Cardstream is a global payments platform, supporting all worldwide currencies and major credit cards, and operating with 100-plus reseller partners and 18,000-plus merchants in more than 120 countries. The firm is headed by CEO Sharpe, and says ideas like ethical business practice and sustainable growth are key to its strategy.
02
ANDREW RALSTON PURE PLANET
Ralston is the co-founder and CEO of Pure Planet, the UK’s first app-only energy supplier, which is using innovative tech and an alternative pricing model to disrupt the energy sector. Pure Planet aims to ‘innovate and make a difference’, which trades in renewables at a better consumer price than traditional energy sources.
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March - April 2020
TOP 32 ENTREPRENEURS
03
ARIF BUTT SELECTSCIENCE
Founder, CEO and Publisher of SelectScience, Bath-based entrepreneur Butt is working to ‘improve communication in science globally and make the future healthier’. SelectScience is an independent digital publisher that provides cutting-edge science technology and research news to a global audience of more than three million scientists to inform and accelerate their research.
04
DR BECKY SAGE INTERACTIVE SCIENTIFIC
Sage heads iSci, which was founded in 2013 and is striving to create a future for business and social enterprise ‘where scientific innovation is collaborative, communicative and effective for 21st century needs’. Her 15 years of excellence in science research, education and business have seen her named a Maserati 100 innovator and winner of the InFocus Women in Innovation award.
05
BRIAN ALLEN ROVCO
Rovco has disrupted the subsea industry by delivering cutting-edge hydrographic services built on groundbreaking tech and expert personnel. The Bristol-based firm has enjoyed rapid growth, and its innovative methods are bringing ML and 3D imagery into subsea inspections used in sectors such as offshore wind, wave and tidal, oil and gas, maritime security and civils.
06
CHRIS BONES GOOD GROWTH
Chairman and co-founder of Good Growth Ltd, an ecommerce consultancy which transforms commercial and organisation strategies to help major brands deliver accelerated growth. As Dean Emeritus at Exeter University’s Henley Business School, he has also published two books on digital strategy. Business Leader - Inspire • Inform • Connect
Adam Sharpe - Cardstream
07
Claire Owen – Loop Software
CLAIRE OWEN LOOP SOFTWARE
Loop is a next generation datadriven platform which enables property professionals to deliver trusted advice to their clients. Founder Director Owen describes herself as ‘a property consultant and proptech founder who cares deeply about excellence in the industry’.
08
GARETH WILLIAMS YELLOWDOG
YellowDog’s tech solutions help companies operating across the globe and in sectors ranging from finance and aerospace to CGI and life sciences, to accelerate and optimise complex data processes. At its head is Williams, who is ‘spearheading the vision to build a world where people do more, create more, discover more; unleashed from limited computing power’.
09
HARRY DESTECROIX UNIT DX & ZIYLO
Destecroix is co-founder and CEO of Bristol deep tech incubator Unit DX, home to the city’s most innovative science and engineering companies. Unit DX empowers scientists as entrepreneurs, and its 32 member companies – working in biotech, synthetic biology, artifical intelligence and robotics to name a few – have collectively raised more than £28m in the past two years.
10
Gareth Williams –Yellowdog
IRFON WATKINS DOVU
Dovu is the cryptocurrency for the mobility industry, which is transforming the global monetisation of data in the transport sector. The firm says it is trying to change human behaviour and offset CO2 through a smart reward-based system, winning financial backing from Jaguar Land Rover’s investment arm InMotion Ventures and the government-backed Creative England.
11
JACK FARMER LETTUS GROW
LettUS Grow comprises of a diverse team of ‘caring, environmentally-conscious plant scientists, developers, creatives, engineers and business whizzes’ with sustainability ‘at their core’. The multi-award-winning outfit is building the farms of the future by enabling indoor farms, of any size, to reach profitability and sustainability in a format which can be scaled globally.
12
JAMES RICHMOND NEVAYA
The Gloucestershire-based founder and CEO of Nevaya, Richmond is ‘brave, bold and decisive to succeed’, and has driven his SaaS company to grow into more than 25 countries including the USA. Nevaya has grown due to its exclusively cloud-based guest entertainment for hospitality, and now services millions of hotel guests every year for significant brands. 53
LEADERSHIP
13
JOEL GIBBARD & SAMANTHA PAYNE OPEN BIONICS
A multi-award-winning entrepreneur who founded the Open Hand Project to develop a low-cost and open-source robotic hand in 2013. In 2014, Gibbard & Payne co-founded Open Bionics with the goal of making advanced prosthetics affordable and accessible to all.
14
JOHN JAMES SEEDATA
Exeter-based Seedata was founded in 2010, and has earned a worldwide reputation as a software designer for the life sciences and healthcare sectors. Its innovative Life QI product is now used by hospitals and other healthcare institutions in 33 different countries, including the US, New Zealand, Australia and Brazil, as well as widely in Europe and across the UK.
15
DR LISA MATTHEWS SETSQUARED
Matthews is the Business Incubation Manager for SETsquared in Bristol and the co-founder and CEO of HellyHolly – a successful start-up in the AI chat industry. The firm has engineered a productivity platform that manages the competing demands for all areas of life – work, social, home and family.
16
LOUISE PASTERFIELD SPONGE
Plymouth-based Sponge is the brainchild of founder and MD Pasterfield, whose 2004 idea to create digital training solutions with creativity at their core has driven the company’s growth and subsequent acquisition in November 2019.
Sponge now forms part of a growing learning group, but continues to create bespoke training solutions which fulfil Pasterfield’s vision of helping people and businesses to ‘learn and grow’.
17
MARK LIPPETT XMOS
Xmos delivers best-in-class voice capture to create an interface between human and technology that can ‘talk, empathise, relate and react’. Its tech is used in the Amazon Alexa, among other well-known devices. The Bristol firm is led by Lippett, who describes his role as one which can ‘encourage innovation, enable profitable growth and look to the future’.
18
MARK ROBERTS LIGHTFOOT
Lightfoot is ‘the Fitbit for cars’ according to its founder Roberts, who says it gives onboard computers a voice to provide real-time feedback on driving efficiency. Funded initially through angel investments, but now with government backing too, Exeter-based Lightfoot says it has created a product which can both save lives and reduce environmental impact.
19
NIGEL TOON GRAPHCORE
Graphcore’s lofty ambition for its cloud services is to help innovators build a future ‘where people live healthier, more informed, more creative lives, where technology enhances human potential and takes us into a new era of intelligence and progress’. Toon’s firm has won more than £85m in funding since 2016, and says ‘we push boundaries so others can do the same’.
20
NIGEL WINSHIP PEOPLE MATTER
Bournemouth’s People Matter is a fourth successful start-up for founder and CEO Winship, an experienced tech entrepreneur who describes himself as ‘a believer in people’. The firm uses cutting edge tech and advances in psychology to allow people to accurately track how different events, relationships and circumstances can impact their wellbeing.
21
PAUL LAWRENCE SALPO TECHNOLOGIES
A career spanning the NHS, healthcare, retail, media, leisure, business and financial services birthed the ‘consultative, entrepreneurial nature’ which has shaped Cheltenham-based Salpo. The firm builds ‘smart, functional, beautiful software’ which delivers solutions for companies ranging from start-ups to FTSE 100 firms.
22
PAUL MULLEN CUBIK INNOVATION
Mullen formed Cubik in 2012, and has grown it from a one-man band to a team of more than 20 technical and creative folk with a stunning client list – spanning everyone from local inventors to multinational corporates. The Bristol firm designs and develops innovative electrical products for a broad range of industry sectors.
23
PETE STIRLING STL TECH & UNITDX
CEO of STL, which focuses on development of early-stage technology concepts, and a Co-Founder and advisory board member of the UnitDX tech incubator. Based in Bristol, he is currently involved in funding a number of key cutting-edge tech start-ups across the West of England.
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March - April 2020
TOP 32 ENTREPRENEURS
Dr Zara Nanu - Gapsquare
Arif Butt – Select Science meeting her majesty the Queen
Steve Cliffe – Ultraleap
Dr Becky Sage - Interactive Scientific
Joel Gibbard & Samantha Payne – Engine Shed
Peter Boucher - Excalibur
Louise Pasterfield - Sponge
Mark Lippett – Xmos
Business Leader - Inspire • Inform • Connect
Nigel Toon - Graphcore
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LEADERSHIP
24
TOP 32 ENTREPRENEURS
PETER BOUCHER EXCALIBUR COMMUNICATIONS
Swindon-based Excalibur provides an end-to-end business consulting service that offers reliable insight and expertise in communications and technology to more than 5,500 customers. CEO Boucher has spent more than 18 years working in multinational companies, and is now applying his dynamic, entrepreneurial, and commercial skills to benefit Excalibur.
25
RICHARD GODFREY ROCKETMAKERS
Bath-based Rocketmakers is headed by software architect, investor, entrepreneur and innovator Godfrey – formerly of Microsoft and Deloitte – and focuses on helping innovative start-ups, scale-ups and corporates through new tech. The firm’s passion is making new, innovative products by ‘taking the kernel of an idea, helping validate the business and technical opportunity, then making it all come to life’.
26
DR SALLY BASKER EXETER SCIENCE PARK
Basker is a qualified engineer with senior level research and innovation experience in aerospace, defence, energy and navigation. Responsible for developing Exeter Science Park as a hub for innovative STEMM enterprises to deliver new jobs, enhanced productivity and economic growth.
27
DR SAMANTHA LAVENDER AND ANDREW LAVENDER PIXALYTICS
The founders of Plymouth-based Pixalytics, an independent space sector consultancy which has been specialising in Earth observation since 2012. The firm – which says it is ‘passionate about science’ – combines cutting-edge scientific knowledge with satellite and airborne data to answer questions about the planet’s resources and behaviour.
28
SILAS ADEKUNLE REACH ROBOTICS
A technology entrepreneur known for creating the world’s first intelligent gaming robot and has been named as Forbes 30 Under 30 Europe in both the Technology and Entrepreneurship categories in 2018. He is the co-founder of Bristol-based Reach Robotics, and is building a company that enables robotics across Africa and another developing AI engines for service robots.
29
STAN BOLAND FIVEAI
A company on a mission, FiveAI is developing the software to power shared, self-driving vehicle services across Europe. Boland’s firm is working to establish transport systems that are quicker, greener, safer, more accessible and more productive for city streets across the continent.
Stephen Fitzpatrick – Ovo Energy
30
STEVE CLIFFE ULTRALEAP
Ultraleap – formed in 2019 through the fusion of Leap Motion and Ultrahaptics – has united the world’s most advanced hand-tracking with the only haptic tech to create the sensation of touch in mid-air. The Bristol firm says: “The digital world of tomorrow is one you can reach out and interact with intuitively. No wearables. No controllers. Just your hands.”
31
STEPHEN FITZPATRICK OVO ENERGY
Formed in Bristol in 2009 by Fitzpatrick, Ovo launched with the aim of making energy ‘cheaper, greener and simpler’. Since then, it has enjoyed enormous operational growth and expanded its environmental ambitions, while a recent takeover of SSE elevated it to second place in the UK’s energy providers list – and catapulted Fitzpatrick’s individual wealth beyond £600m.
32
DR ZARA NANU GAPSQUARE
An entrepreneur who ‘believes business can generate social impact as well as revenues and profits’, Nanu is CEO of Gapsquare, which applies science to the creation of productive, engaged, inclusive and diverse teams.
Dr Sally Basker – Exeter Science Park
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Silas Adekunle –Reach Robotics
The firm revolutionises HR practises by combining data, psychology and economics to improve decision-making in recruitment and team structure.
March - April 2020
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INTERVIEW
CEO IN FOCUS:
JUDITH TOTTEN Judith Totten launched Upstream Working Capital in 2011, and has enjoyed strong growth since then, expanding operations from Northern Ireland to support businesses across the UK with loans of up to £2.5m. BLM talked to Judith about her journey from ‘taking a punt’ in the early days, to her passion for supporting business – and why she’s learned she’s ‘a bit of a rottweiler’ at times…
CAN YOU TELL US ABOUT UPSTREAM WORKING CAPITAL? I started the business after a career in banking in about 2011, with nothing. I had no cash, no customers, no staff, but I knew there was an opportunity because the banking crisis was at its height and I realised a lot of SME companies were going to struggle for working capital. So I went out and raised some money from friends, family and fools, as they call it, and I remortgaged the house and frankly took a punt. Today we have over 100 clients, we 58
have over £100m out the door, and I have 12 full-time staff. WAS THERE A ‘LIGHTBULB’ MOMENT WHICH CONVINCED YOU TO LEAVE MAINSTREAM EMPLOYMENT? I guess not a lightbulb moment, it was more a big birthday! Turning 40 made me realise that if I didn’t try something different – maybe I never would. I was also seeing a looming bank crisis impacting my ability to help customers do what they wanted and required in order to progress – I know I would have struggled with that.
HOW BIG WERE YOUR AMBITIONS AT THAT TIME? Honestly, I had no concept of what I was going to do, what I wanted to achieve and even whether I could actually do it. I just felt instinctively that I could do things differently and make some small difference to business owners. HOW HARD WAS IT TO GET OTHERS TO BUY INTO YOUR VISION? Once they got over the initial surprise of me leaving a secure job in the bank, I got nothing but support and help from everyone March - April 2020
CEO IN FOCUS
"DON’T BE AFRAID OF FAILURE; IF YOU’VE GOT THE FIRE IN YOUR BELLY AND YOU’VE GOT A DREAM, FOLLOW IT, DO IT – AND IF IT DOESN’T WORK, DO IT AGAIN."
had good, solid trading businesses but had hit some stormy waters – I listened and felt they needed a chance to rebuild and regroup. So, I’m not sure it was as much confidence, it was more faith in the business population that they would show their customary resilience and make it out the other side. I wanted to help them do that – and also by this time I had a wonderful team of amazing people around me, who had all left secure roles to be with me, so I just get the head down and work hard. Simple really. WHAT HAS THIS TAUGHT YOU ABOUT YOURSELF? The journey for me was transformational. In my banking days, I would have been an individual who, if they had asked me to change desks, I would have to think about it for a few months. When you become selfemployed and you start to run a business and start to employ people and make decisions, you realise that actually you can do it. I think the one thing I learned about myself was that I’m a bit of a rottweiler in some respects; when I see something and I have a dream, I’ll go for it, and while it’s a windy road sometimes to get you to that end point, you’ve just got to be tenacious and learn not to take no for an answer.
I asked. The hardest part was finding a funder to back me on day one. Eventually after presenting to many potential providers – some of whom I had never even heard of in those days – the last one said yes! And it only takes one, after all. WHAT WAS IT THAT GAVE YOU SUCH CONFIDENCE YOU WOULD ULTIMATELY SUCCEED? The market I started in was challenged and constrained as a direct result of the banking crisis, and the customers approaching me needed my help. Many business owners Business Leader - Inspire • Inform • Connect
HOW HAVE YOU FOUND IT AS A FEMALE CEO IN A TRADITIONALLY MALEDOMINATED SECTOR – AND WHAT ADVICE WOULD YOU OFFER TO OTHER WOMEN LOOKING TO BREAK THROUGH IN FINANCE? I’ve never really suffered any prejudice and having always worked in predominantly male teams, I can ‘hold my own’ as the saying goes. Sometimes it can be daunting to be the only female in a room of ‘suits’, but ultimately, I respect honesty, integrity and professional behaviours regardless of gender or anything else and that is mostly reciprocated. I would say to a woman starting out on an entrepreneurial journey: Do it. Go for it. Don’t be afraid. When you’re starting out there are lots and lots of people who will give you advice, and there will be doubters
and people who will say to stay where you are, don’t change. But don’t be afraid of failure; if you’ve got the fire in your belly and you’ve got a dream, follow it, do it – and if it doesn’t work, do it again. CAN YOU GIVE EXAMPLES OF BUSINESSES YOU’VE BEEN ABLE TO HELP WHICH HAVE GIVEN YOU PARTICULAR PRIDE OR SATISFACTION? I can’t name names of course, but certainly many of the clients who came to us in the early days are still here, and often they will say ‘if it wasn’t for you guys, we wouldn’t be here today’. The businesses who have come to us as new starts or restructures, and who then flourish, fly and succeed are the most rewarding. But if I were to pick one standout example, I have one guy, a man in his late 60s who came to me in great distress. He had a successful business which had got into some difficulties through the property collapse, and his home bank was refusing to support him through a restructure. He had been in business for 40 years, had great pride and integrity and he was broken. This poor man cried in a coffee shop as he told me his story and no-one should ever feel that way – he was worried for his staff and his family and at no point did he ever bemoan his own fate, which really struck a chord with me. Long story short? I took on his business, restructured his debt and six years later, he is back and exceeding his previous successes. He is one of my strongest advocates in the marketplace and he and I are firm friends. It really wasn’t that hard to listen, care and take action. WHAT IS YOUR AMBITION NOW? WHERE DO YOU SEE YOURSELF AND YOUR BUSINESS IN TEN YEARS’ TIME? We have recently bought out our original funders and brought in new debt and equity partners who are ambitious for us to scale across the UK and Ireland. I am excited to see what the next few years bring as we plan to diversify and widen our product and sectoral range to bring new, innovative and exciting structures across the market. Watch this space.
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HR REVIEW
IMMIGRATION LAW CHANGE
WHY ‘GETTING IT RIGHT IS CRITICAL FOR ECONOMIC GROWTH’
R
adical new rules on immigration and overseas talent recruitment are on the way – but how will they work and what are the implications for business? BLM investigates…
Government efforts to limit immigration and end the UK’s reliance on ‘cheap, low-skilled labour coming into the country’ mean new legislation is on the horizon for 2021. A points-based immigration system, akin to that of Australia, will be adopted in the wake of Brexit, with would-be workers judged
on credentials including skills, qualifications and salaries prior to UK entry being granted. Home Secretary Priti Patel described the new legislation as ‘a historic moment for the whole country’. She said: “We’re ending free movement, taking back control of our borders and delivering on the people’s priorities by introducing a new UK points-based immigration system, which will bring overall migration numbers down.
“We will attract the brightest and the best from around the globe, boosting the economy and our communities, and unleash this country’s full potential.” Initial response from business organisations suggests the move has been well-received – in most cases. However, there are some sectors which are likely to be impacted more severely, while assurances are still being sought on other key details. The new rules So, what’s changed? The new system ends free movement, and will see EU and non-EU citizens judged equally when assessing residency applications. Workers will need to meet a wide range of criteria relating to skills, qualifications and the ability to speak English, to be able to work in the UK – and must have a job offer for a role earning a minimum of £25,600 in place prior to entry. Around 70% of EU workers currently in the UK would fall short of the benchmark. Are businesses happy? Generally speaking, they seem to be – providing rules don’t restrict access to skills and labour – help is available to navigate the new laws, and implementation doesn’t prove too expensive. There are caveats, though. A Forum of Small Business survey says 59% of firms harbour concerns about being able to access workers with the skills they need postBrexit, while 95% have zero experience of navigating immigration laws and want help to do so.
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March - April 2020
IMMIGRATION
With UK productivity stagnant for a decade, and key sectors already facing a skills shortage, the government is being warned it must not place further barriers in the way of progress and growth for the nation’s businesses. Carolyn Fairbairn, Director-General of the Confederation of British Industry, said: “Getting a new immigration system right on day one will be critical for economic growth and the UK’s global reputation as it forges a new path outside the EU. “Firms recognise and accept that freedom of movement is ending, and have sought a system that is both open and controlled, valuing people’s contribution beyond their salary while retaining public confidence.” And Mike Cherry, National Chairman of the Federation of Small Business (FSB), warned business needs must be considered when implementing change. He said: “For many small businesses, a fair and flexible immigration system is just as, if not more, important than securing our trading future. “One in five small employers in the UK have at least one staff member from the EU. These firms rely on talent from outside the UK to plug current skill gaps, grow their businesses and contribute to the wider economy. From graphic design studios, to farms, to care homes, to engineering firms – tighter immigration restrictions will hurt businesses across all sectors and all skill levels. "It is critical that workers, that are vital to unleashing the UK’s growth potential, are not locked out by a system that doesn’t meet the needs of the UK’s business community.” The FSB warned that 13% of small UK firms would consider moving their business abroad and 8% may close the business if there were additional barriers to recruiting EU workers. Which sectors will suffer? While some skills are prized enough to warrant special dispensation, other sectors will find their recruitment ambitions face significant challenges. Although the reduction in the minimum salary level – from the previous benchmark of £30,000 – will open doors to some, it will still prove prohibitive to others. This is part of a deliberate government attempt to halt the influx of low-skilled Business Leader - Inspire • Inform • Connect
Mike Cherry
Jonathan Beech
workers, but will have an inevitable impact on certain types of business and employment. Fairbairn said: “Several aspects of the new system will be welcomed by business, particularly abolishing the cap on skilled visas, introducing a new post-study work visa for overseas students, and reducing the minimum salary threshold. “Nonetheless, in some sectors firms will be left wondering how they will recruit the people needed to run their businesses. With already low unemployment, firms in care, construction, hospitality, food and drink could be most affected.” Law firm Migrate UK specialises in immigration law. Its founder Jonathan Beech has worked in the sector for 20 years and has consulted on immigration for the UK Border Agency. He warns the hospitality sector in particular will suffer. Beech said: “There are certainly particular sectors that will be more winners and more losers.
Lex Butler
“On the other side, the hospitality sector will be hit hardest due to the qualifying salary threshold still remaining high at £25,600 and there being no regional variation.” Lex Butler, Chair of events and hospitality association HBAA warns the new rules will have a far-reaching impact on the sector. He said: “The government’s post Brexit immigration plans will put at risk the UK’s position as a world-class destination for business and leisure tourism.
“The industry is working hard to recruit more UK-based talent to build careers in this industry but we shall not be able to replace all the migrant workers by the time the "GETTING A NEW regulations come into place.
IMMIGRATION SYSTEM RIGHT ON DAY ONE WILL BE CRITICAL FOR ECONOMIC GROWTH AND THE UK’S GLOBAL REPUTATION AS IT FORGES A NEW PATH OUTSIDE THE EU."
“The construction industry has been given a major boost after the MAC suggested adding a list of construction jobs, including carpenters and joiners, glaziers, window fabricators and fitters to the proposed plan to lower the skill level for vacancies. This could be a major advantage to the construction sector, worried that their vacancies were being phased out as ‘lowskilled’.
“Once again, being relatively low-paid is immediately equated with low-skilled, even though in this industry many staff with high levels of responsibility and skill fall below this financial threshold.”
Social care is another sector where the impact is expected to be significant. Care roles typically pay around £16,000, and at present 17% of people working in the sector are non-British nationals.
Carolyn Fairbairn
Yet one in every 11 roles – 122,000 – in the sector is already vacant, placing the sector at crisis level.
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REVIEW IMMIGRATION
Ben Gershlick, Senior Economist at independent charity The Health Foundation, said: “The government’s new immigration system looks set to make our social care crisis even worse. “Migrants are a crucial part of the social care workforce. Without any specific migration route for social care workers, these proposals will make it almost impossible for people from overseas to come and work in most jobs in this sector. “Social care needs investment and reform to address the underlying causes of staff shortages. As it stands, the government’s new immigration policy will only make existing problems worse.” Global Talent visa There are some key fields which will be exempt from these new rules, however. The new Global Talent scheme – operating since late February – will ensure a fast-track route into the UK for experts in science, maths and research. The scheme does not cap the number of people coming into the UK under this initiative, nor limit the length of their stay. Patel cites the initiative as proof science, research and innovation sit at the top of the national business agenda. She said: “The UK is a world leader in science, with research and innovation that changes lives being undertaken every day in this country.
Ben Gershlick
Julia Buckingham
“To keep the UK at the forefront of innovation, we are taking decisive action to maximise the number of individuals using the Global Talent route including worldclass scientists and top researchers who can benefit from fast-tracked entry into the UK.” Professor Julia Buckingham, President of Universities UK and Vice-Chancellor of Brunel University London, describes the move as a ‘positive step’. She said: “The Global Talent visa will help to ensure that universities can attract the brightest scientists and researchers to the UK with minimal barriers. “Universities are globally connected and this announcement signals that the UK remains open to talent from around the world. “Our universities carry out life-changing research and our knowledge base, economy, and wider society will benefit from the international staff we can attract through this visa route.” Warning for government With a new system now in the pipeline, a smooth transition will be sitting at the top of most companies’ wish list. Making the rules simple, transparent and effective will be crucial, says Cherry.
Edwin Morgan
“We see the benefits of a points-based model, so long as it’s one that’s easy to use and affordable for small businesses – almost all of which have no experience of using our current immigration system. “Against a backdrop of stifling skills shortages, sluggish economic growth and an ageing population, it’s critical that we get this right, particularly as the timeframes are so short.” And Edwin Morgan, Director of Policy at the Institute of Directors, said: “The overriding concern for business is bureaucracy. The government must ensure firms aren’t faced with a Byzantine system when they need talent to grow. “Implementing a new system and adapting to it will be a race against the clock for both government and businesses.” And Fairbairn added: “Firms know that hiring from overseas and investing in the skills of their workforce and new technologies is not an ‘either or’ choice, both are needed to drive the economy forward. So careful implementation across all UK nations and regions will be required. "A regularly reviewed shortage occupations list, with promises of further flexibility, will be vital for the effectiveness of the new system. “Above all, the government must work with employers and employees – especially smaller firms – to ensure they have the time to adapt to new policies and practices.”
He said: “Ultimately, small firms want a responsive immigration system that is alive to the skills shortages – at all levels – that are holding them back. 62
March - April 2020
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FEATURE
What does the rise of the robots mean for UK jobs?
R
obots were long the realm of science fiction writers – but with Industrial Revolution 4.0 delivering incredible advancements in technology and artificial intelligence, robots are making the leap from fantasy to reality. What does this mean for human employment? Business Leader investigates. “The problem for the UK labour market and our economy is not that we have too many robots in the workplace, but that we have too few,” says a new government study analysing industrial automation.
“The risk we face is not a robot takeover of our workplaces, but that our lack of adoption and the reluctance of businesses and the government to lead the way in the Fourth Industrial Revolution means other countries will seize the initiative and take the advantage of new technologies – not least the growth and jobs they bring – while we are left behind. “If we fall further behind in productivity and the adoption of new technologies, then future investment decisions will not follow. Businesses, investment and jobs will move overseas.”
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March - April 2020
FUTURE OF WORK
This stark warning comes from the crossparty Business, Energy and Industrial Strategy (BEIS) Committee’s new report 'Automation And The Future Of Work', which makes it clear British industry needs to rise to the challenge of automation – and do it quickly.
not only reduce false diagnoses, but also mean cancer can be spotted earlier, when it is harder to detect – but potentially more treatable. And while a human bedside manner is one of the most valued elements of medical care, BRL has made real progress in this area too.
But which sectors are embracing robot technology? And what are the implications for the nation’s human workforce?
Scientists have created the world's first socially intelligent humanoid fitness coach, which offers motivational voice prompts and gestures to guide people through personalised exercise regimes. It tells jokes, shows sympathy, uses human-style body language and even changes its eye colour to express different emotions.
Why do we need robots? From robot waiters to driverless cars, robot tech is infiltrating day-to-day life at an unprecedented rate. Companies embracing automation are doing so for a variety of reasons: tasks can be too complex for humans; too mundane and repetitive for people to want them; risks could make jobs too dangerous; robotic output may far outstrip a human’s; or employers may wish to trim their wage bill. UK firm Bots.co.uk, a leading authority on robots as a service, believes safety is often the driver. However, it says many industries have seen major growth in robot application, ranging from nuclear site cleaning to cow herding, and from oil pipeline inspections to firefighting. A Bots.co.uk spokesperson said: “Robots as workers are really taking off to fill dangerous jobs people can’t find employees for. As the market develops, we see more dangerous jobs – from emergency rescue to protecting environmental sites – as being ideally suited to robots. “(But) it isn't just safety where bots are excelling, because in many ways they also offer a new level of accuracy and efficiency in completing tricky tasks.” Indeed, efficiency and intricacy are big motivators for transferring tasks from human hands to metal ones.
Dr Susan Bieller
Its experts are working with North Bristol NHS Trust (NBT) to roll out robots in hospitals; as a result, Southmead Hospital is now one of the most technologically advanced in Europe, with robots conducting cancer operations, dispensing medicines and analysing blood samples. Robotic surgeries are rated as ‘more accurate and less invasive’ than procedures by humans and reduce both blood loss and the length of hospital stays, while automated vehicles transport food, linen and medicine around the hospital 24/7. Professor Praminda CalebSolly, leading research in Assistive Robotics and Intelligent Health Technologies at BRL, said: “Robotics can enable a more effective use of the workforce, allowing humans to give the human contact and robots to be used as smart tools to support and complement their work.”
And NBT Clinical Director Tim Whittlestone added: “Robots can help us do some of the more mundane, repeatable tasks and free up staff to do what they do best – listening, thinking and caring.”
“New technological solutions pave the way for more flexibility in production.”
Google Health made headlines recently after unveiling tech which can identify breast cancer more accurately than radiologists.
Business Leader - Inspire • Inform • Connect
In December, the BBC used computers to write its general election news coverage. Machine-generated stories – in both English and Welsh – were published for every constituency, albeit they were checked by a human editor prior to going live. Respected publications such as the New York Times and Reuters use articles created by AI too, while the Press Association produces up to 30,000 stories a month in this way.
"IF WE FALL FURTHER BEHIND IN PRODUCTIVITY AND THE ADOPTION OF NEW TECHNOLOGIES, THEN FUTURE INVESTMENT DECISIONS WILL NOT FOLLOW. BUSINESSES, INVESTMENT AND JOBS WILL MOVE OVERSEAS."
“Smart robotics and automation are vital to deal with new consumer trends, demand for product variety or challenges from trade barriers,” says Dr Susanne Bieller, General Secretary of the International Federation of Robotics.
Real-world innovation Bristol Robotics Laboratory (BRL) at the University of the West of England is home to many of the nation’s robotics pioneers.
Even creative industries, where a human touch has long been rated vital, is seeing artificial intelligence (AI) emerge as a force.
The company's UK lead Dominic King said the ‘really exciting’ breakthrough would
AI writers are not restricted to formulaic or data-driven works, either – they are now producing poetry and novels too. What roles are at risk? While it’s clear some roles will be rendered obsolete, it’s not as clear-cut as pointing at specific industries or roles, as there are plenty of other factors in play.
Age, gender, location and education are all important, according to the Office for National Statistics (ONS). Jobs rated a high risk of being lost to automation are held by women in 70% of cases – which compares unfavourably with the 42% of females in roles considered low risk. Cont.
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FUTURE OF WORK alternative ways of performing tasks for which they have a shortage of staff – robot automation being an obvious solution.” What comes next? “The onset of new technological advances – artificial intelligence, automation and robotics – are already creating vast opportunities for new jobs,” according to the United Nations General Assembly. “Yet, those who lose their jobs as result of new technologies may be less equipped to seize new opportunities and may be added to the ranks of the long-term unemployed.
Simon Howes
Mike Wilson
Part-time roles are substantially more at risk than full-time jobs, while people aged 20-24 are most likely to be usurped by robot labour. Location is a significant barometer too. Roles in London and the South East are mostly rated low risk, but there are highconcentration pockets of ‘at risk’ roles in other regions, especially poor, former industrial areas. However, education emerges as arguably the most important differential. People with a degree look to be safest by some margin, accounting for 87% of the ‘low risk’ category – and none of the ‘high risk’ section. Altogether, the ONS says 7.4% of the 19.9 million jobs in England are in sectors at high risk of automation – a total of 1.5 million jobs. How is the UK performing? It’s fair to say the UK has significant work to do to become a genuine force in robotics – yet doing so could have an immediate and much-needed impact. The country has been in the grip of a productivity crisis for more than ten years, with manufacturing recently recording its worst quarterly performance in a decade. Simon Howes, Managing Director of the South West Manufacturing Advisory Service, says just 18% of manufacturing firms in the region have introduced robots 66
“Global dependence on technology means skills in demand today will not match the jobs of tomorrow. Skills acquisition and lifelong learning will be required for workers to remain agile and employable.”
into their business – which he believes is limiting their success. He said: “Although the UK ranks as the eighth largest industrial nation, we are 22nd in the global league of robot adoption – we must ask why that is. “Finding technological solutions is increasingly important. There is an opportunity to do more with robots: you can see this in the continuing drive to increase productivity, and the need to find new ways to operate with fewer staff.” This need to cope with smaller teams is another key reason to accelerate tech adoption, according to Mike Wilson, Chairman of the British Automation and Robot Association. He warns: “The United Kingdom has been adding robot automation at a lower rate than our main competitors in all manufacturing sectors outside of automotive.
“Over many years, the UK has attracted workers from other countries, with businesses preferring to hire people rather than invest in capital equipment. The "ALTHOUGH THE UK consequences of the Brexit RANKS AS THE EIGHTH vote and subsequent political LARGEST INDUSTRIAL developments are leading to reduced labour availability as NATION, WE ARE many workers who have come 22ND IN THE GLOBAL over from Eastern Europe are LEAGUE OF ROBOT starting to return home.
ADOPTION – WE MUST ASK WHY THAT IS."
Simon Howes
“As a result, businesses have to ensure they use their workforce effectively and find
And that is crucial, it seems. Ensuring human workers are supported rather than displaced – and advances improve quality of life for human workers, rather than leaving them redundant – must be the focus. That will require strong leadership from both public and private sectors, according to BEIS. It concludes: “Rather than massunemployment or the end of work, we are convinced well-managed automation is likely to improve the quality of work, create new jobs and boost UK productivity. “Historically, large industrial transitions have seen changes to work but, rather than causing long-term job losses, they have resulted in more of the population in work than before and the quality of work improving. “If managed well, the transition to a more automated British workplace should make businesses more productive, improve the supply of high-quality jobs and support working people to have more leisure time. “It this transition is managed badly, entire groups and regions could be left behind, British businesses could find themselves uncompetitive and SMEs will continue to form a long trail of unproductive businesses. “The government needs to take more seriously the opportunities and risks of automation. It should collaborate with all those who want to harness automation to boost productivity and living standards – and it should not delay in doing so.”
March - April 2020
5 TIPS FOR FAST GROWTH
1. Have a clear vision and share it Too often, Founders and CEOs of businesses will think about the people that they need for the next stage of growth before they have clarified their vision and where they’re trying to go. It won’t be the first time that somebody has set off for Bali and arrived in Amsterdam. It is absolutely imperative that your vision is fine-tuned, your ambitions clear, and your goals set before you start moving people around or recruiting new people. 2. Evaluate you team for skill gaps When you’re clear about your strategy, vision and goals, take the time to evaluate your current team in order to truly understand what you have and what you need. Different journeys call for different skills, behaviours and even people. We suggest that before you set off, you take a thorough look in the kit bag.
3. Structure your business for the future, not for today Once the destination is clear and you understand what you have in your team, look to build a structure that is fit for two or three steps ahead of where you are now. Growth often comes quickly and it is critical that your structure is capable of supporting the business through the peaks and troughs of accelerated growth. 4. Recruit with the future in mind Just as you should build a structure that is fit for growth, you should also recruit ahead of your growth curve. By doing this, you will ensure you have people that are capable, not only of achieving next year’s financial goals but the full three-year plan. This may seem expensive at the time but experience is invaluable and costs soon turn into profits if your new team hit your plan ahead of time.
5. Find the people who fit When recruiting, build on your culture and find people that absolutely fit. Too often, companies rush to recruit because they have a vacancy and sacrifice either the cultural or technical fit. Rarely does this work and it is the key reason why a significant number of recruits fail. We have developed a system that guarantees fit and we advise our clients to focus on this to ensure that they recruit people who propel their growth, not hold them back. About ORESA ORESA transforms businesses from the top down. For over a decade we’ve put leading executive talent into digital, retail, fashion and consumer organisations that have delivered exceptional growth. But we’re more than executive search – we’re growth strategists. We propel companies to growth by bringing together strategy, leadership advisory and executive search.
Get in touch with our CEO Orlando Martins to hear how we can help your business grow. Tel: +44 (0)20 3675 1459 Email: orlando@oresa.co.uk Business Leader - Inspire • Inform • Connect
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REGIONAL SPOTLIGHT
Bath: A ‘global brand which gives any business instant recognition’
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city famed for its history, architecture and culture, Bath has also emerged in recent years as a hotbed of creative and tech talent and a thriving professional services hub.
In the latest in our series of city spotlight features, BLM speaks to some of the city’s business success stories to learn more about Bath’s strengths, weaknesses and future ambitions…
What’s unique about Bath as a place to do business? Stephen Rangecroft, Director of Corporate Services at the University of Bath, said: “Bath is a historic and beautiful city and is recognised by UNESCO as a World Heritage Site. It has great connections to the rest of the South West but also to London, making it a very popular commuter hub and location for business events. It has a very supportive and engaged business community with many networking events and opportunities to collaborate, plus 68
access to a graduate talent base from a top 10 UK university.” Arif Butt, Co-Founder and CEO at SelectScience, said: “Bath is unique simply because it’s Bath – it has so much to offer, not only in terms of the buildings and history but also with events such as Bath Festival, the Jane Austen Festival and the renowned Christmas Market. With a name that resonates on the global stage, people just love coming here, whether to visit or to work and live.
“Bath’s global brand gives any business instant recognition, especially for our members and customers in the US and across the globe.” Ian Bell, Executive Director, Bath Chamber of Commerce and the Initiative in B&NES, said: “The city's historic architecture provides a beautiful backdrop for commerce which is much admired. There is a strong tradition of creativity and members tell us that staff enjoy a walkable and vibrant city in which to work.” March - April 2020
BATH
Stephen Rangecroft
Arif Butt
Sammy Mansourpour, Managing Director of Agency UK, said: “Being in Bath has some lovely quirks to it. It’s a good place to get your head out of the hustle and bustle and for teams to be able to really think creatively. "Building a creative culture in Bath, I would say, is relatively straightforward. If you have access to talent, as we have, it’s not an issue to be in Bath. It’s a great city, and it’s culturally a very nourishing city, with a lot of exceptional people.” Hayley Blacker, Director at Interaction, said: “The business community in Bath is next to none. There are endless options and opportunities to attend networking events, workshops, seminars, socials and awards to celebrate the variety of businesses that Bath has to offer and how the city has grown in the last couple of decades.
Ann Hiatt, international business consultant and speaker, said: “My experiences in Bath have been centred around the thriving entrepreneur community. "I have been amazed by the talent assembled at incubators and accelerators like Rocketmakers. "Coming from Silicon Valley, where I worked at Google and Amazon for the last 15 years, I feel right at home in these environments and thrive off of that energy.” Business Leader - Inspire • Inform • Connect
"The business community allows small businesses to thrive, but also large businesses to continue to grow and succeed. It really does feel like being part of something truly unique.” Mike Roe, CEO at Footdown, said: “Nothing; it’s all about the people, ideas, teamwork, execution, determination and kindness.” What are the strengths of the city from a business perspective? Bell: “A major strength is the quality of the workforce, assisted by the presence of two leading universities, a highly-regarded college and some top-class schools. Young people are keen to take on the creative
Ian Bell
traditions of Bath and apply themselves to modern technologies. “Another advantage is the proximity to Bristol; its airport and excellent rail links make London readily accessible." Hiatt: “Bath offers a unique combination of the wisdom from its rich history, a pride and appreciation for beauty from its streets and daily life, while remaining agile to new technologies and trends reflected in its forward-thinking population. “This region of the UK has surprised me with rapid adoption of technology and naturally innovative spirit.” Roe: “I have had the privilege of being involved in the Bath Footdown Fifteen for over 15 years; a group of local business leaders and entrepreneurs who demonstrate the passion, talent and spirit that resides within our part of the country. The Bath Fifteen is a very small example of the extraordinary people who live, work and care in Bath… find them and connect.” Butt: “For an online innovator such as SelectScience, Bath offers bright local talent. It’s blessed with two excellent universities offering strong science and media courses, one of which – Bath Spa – is across the road from our HQ. It also has a large pool of digital start-ups, so we’re able to recruit good people with all the right skills on our doorstep. Many of our top employees were educated here and then stayed to build careers with us. Cont. 69
REGIONAL SPOTLIGHT
BATH
Ann Hiatt
University of Bath
“It’s a great location for a global business. Transport links are good to London and while we work hard to minimise our environmental footprint through virtual meetings and conference calls, we do have Heathrow, Bristol and Cardiff airports should we need to travel internationally.” Blacker: “Being in a central city location means being at the heart of the city life. As a business we are easily accessible, have a beautiful city from which to work and we are able to attend, with ease, any number of training workshops, events and meetings. As a whole, the business community is one of Bath’s greatest assets.” Mansourpour: “Bath is still vibrant from a multicultural perspective, largely driven by tourism, and also by the fact so many people live here and commute to London. There are a lot of high net worth, wellconnected individuals in Bath. Over the years, that has led to financial services companies, law firms, professional services companies, and with them comes prestige and people of influence, and in turn, business opportunities.” And what are its weaknesses? Rangecroft: “Bath’s compact nature is both a strength and a weakness. Making connections and meeting with other 70
like-minded businesspeople is very easy but there is limited space for expansion as businesses grow. Like many old cities, traffic congestion is currently a real issue but the excellent train connection does mitigate against this.” Bell: “As a result of the popularity of the place and the lifestyle it offers, house prices are high, which means some people who work in Bath can't afford to live here, contributing to road congestion. “There is a shortage of modern office space, but this is being helped by the development of the Bath Quays site, which will galvanise the city centre.” Butt: “City centre access is a problem the pollution and lack of office space and parking with electrical charge points is a concern.
"BATH IS STILL VIBRANT FROM A MULTICULTURAL PERSPECTIVE, LARGELY DRIVEN BY TOURISM, AND ALSO BY THE FACT SO MANY PEOPLE LIVE HERE AND COMMUTE TO LONDON." Sammy Mansourpour
Sammy Mansourpour
“At SelectScience, we’re lucky to be based where we are — a little further out, just off the Bath-Bristol cycle path and surrounded by green space. We have free parking for anyone who drives, regular bus services thanks to the nearby university and an on-site shower for the cyclists. It couldn’t be much more different from the challenges of central Bath.” Mansourpour: “I think that access is improving by rail, but access by car is just a pig. And that is a problem – we can’t get in or out of the city fast enough during busy periods. “The other challenge is around infrastructure. There is not adequate office buildings in Bath for modern ways of working. There just isn’t enough. We’ve looked for years for bigger premises and it just doesn’t exist on the scale that we need. It’s also exponentially expensive given the lack of infrastructure. General technology like superfast broadband is not available in every corner of the city and it’s unworkable for many. “The other thing is that most of the buildings in Bath are Georgian buildings. They are not conducive to modern ways of working. They are not open plan. They are made of incredibly thick stone walls. Wireless does not travel between the different rooms, and if you’re on the ground floor you’ll have no mobile reception. That’s just the reality of the architecture of Bath – it was built for Romans, it was not built for cars or tech businesses and open-plan working.” Cont. March - April 2020
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...to any of my competitors” Ben, CMO
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REGIONAL SPOTLIGHT
Blacker: “Of course, Bath is not the largest city and at times struggles to attract larger companies to its community. For some this can be viewed as a weakness, but its great location and infrastructure allows us to work all across the UK. We operate predominantly in the South West, but with many clients across the UK Bath’s transport links allow for comfortable expansion. It is no doubt that Bath’s location has played a major role in our success.” Which are Bath’s strength sectors? Rangecroft: “Bath is fast becoming a real creative hub and is home to everything from software developers to digital agencies to professional services and consultancies. There is a real growth in high-tech focused start-ups which is expected to grow.” Bell: “Bath is home to a large number of professional services companies and to a wide range of technical and creative businesses. I would anticipate these to remain as the key economic drivers for Bath and it is likely their numbers will grow in the years to come. One important element which supports that optimism is the number of graduates who stay to live and work in the area after studying in Bath. “The visitor economy will continue to be an important element which supports a strong retail offering from both major national chains and popular independent shops.” Blacker: “Bath is home to a huge variety of businesses, from legal to property and small start-ups to globally-recognised
BATH
brands. You only have to look at some of the top 100 companies lists to see the breadth and depth Bath has to offer. That’s why it is such a great place to do business.
“There is a shortage of good quality office space for larger organisations and housing remains expensive, which can be a factor in attracting a skilled workforce.
“There is definitely a rise in the tech sector within Bath which we see continuing to grow. Rocketmakers is a great example of this. We moved Rocketmakers into the new Manvers Street offices in 2017 and it has continued to grow, thrive and act as a great advocate for other tech companies who might be considering Bath as a home. It is certainly a sector we see as a future powerhouse for the city.”
“Enabling the city to grow while providing affordable housing, good transportation and reducing its carbon footprint are real challenges which can bring together the local authority, businesses and academic researchers.”
Butt: “As mentioned previously, the digital community is flourishing in Bath and long may it continue. It’s the future and Bath is right at the heart of it.” What are the main challenges and opportunities when it comes to evolving Bath? Bell: “World Heritage status is both a blessing and a curse. It brings in visitors and adds a lustre to the background within which commercial activity takes place. However, it can sometimes be used as a brake on advancement and there can be tension with the inclusion of modern design, even when it is of high quality.” Rangecroft: “Bath’s historic past can be restrictive when it comes to planning largescale infrastructure and building projects but there are several developments which are helping the city to create new opportunities.
Butt: “As well as the pollution problem, the lack of office space in and around Bath with sufficient environmentally-friendly parking is a rate-limiting step for growth. If these small digital companies keep growing, they may struggle to find anywhere suitable locally. We could lose talent from the area if more space isn’t created, and nobody wants that. It’s vital that the city plans better for business expansion. “As for the traffic, with no sign of any improvement for decades, perhaps it’s time for something radical, maybe even revisiting the Buchanan Tunnel idea from 50 years ago – building a dual carriageway tunnel right under the city. Investment in charge points for electric vehicles would be helpful too.” Roe: “The increasing challenges, complexity and opportunity for business leaders will require vision, entrepreneurship and a resilience to make things happen.
“Bath may be a city of outstanding cultural heritage and beauty (a great starting point), but we have to create an environment and atmosphere that allows everyone to succeed, where the mindset is that nothing is impossible. We need politics and the community to take a much longer world view. ‘None of us are smarter than all of us’ – collaboration and "WORLD HERITAGE partnership is key.”
STATUS IS BOTH A BLESSING AND A CURSE. IT BRINGS IN VISITORS AND ADDS A LUSTRE… HOWEVER, IT CAN SOMETIMES BE USED AS A BRAKE ON ADVANCEMENT."
Ian Bell
Hayley Blacker
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Mike Roe
Blacker: “One of the main challenges Bath faces is attracting large and established businesses to setup headquarters or regional head offices here. Although we have direct transport links within the South West and to the Midlands and London, Bath still needs to offer that grade A modern office space that these larger corporations require to thrive." Cont. March - April 2020
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REGIONAL SPOTLIGHT
“It is a positive sign however to see the continued push and desire for developments such as Bath Quays and the Stadium for Bath. These two projects in particular have the potential to have a real positive economic impact through employment opportunities and sectorspecific growth.” Mansourpour: “We’re already seeing more Paintworks-style proposals being put forward by planners on the riverfront. The university has both helped and hindered; helped construction and development in the city, but also hindered it, because by building lots of student accommodation it has upped the price of land, which has reduced the amount of developers putting in office space. “I think the automotive issue is always going to be an issue – cars are big, roads are small. I think it is a transport solution, and that will get solved by car sharing or electric cars. It’s not something planners are going to solve because it is unsolvable. Innovation will change that.” What does the future hold for the city? Blacker: “Bath is a city built on history and culture, so it is no wonder we describe it 74
as a quirky, unique and picturesque place to work. Around every corner you can see juxtaposing landscapes of modern architecture embedded with old fashioned quirks. We are very proud to be a part of this culture and community. Bath’s identity is no doubt a major attraction for many businesses, including ourselves. “It is important, however, that we don’t shy away from modernising elements of the city. It will of course always be a priority to hold onto Bath’s unique history, whether that be through architecture, attractions or social networks, but there is also an economic need to expand and modernise. A fantastic example of this is the Bath Quays development. This will look to house a number of new businesses from small to large and will act as an epicentre from which to do business.” Bell: “The trick is to respect the past while embracing the future with enthusiasm. If that can be pulled off there is every prospect Bath can look forward to years of sustainable economic growth. “We have high hopes the development of the Bath Quays site will provide the modern office we need to retain successful companies and attract fresh inward investment.
BATH
consultation it looks as though their exciting plans are coming close to fruition. This will not only provide a first-class place to watch rugby, it will be a place for community activity, create a large underground car park and conference and event space.” Mansourpour: “The city will evolve, and it will adapt. I think the biggest change will be what happens in the retail district. We’re seeing a decline in retail in the high street, and how that is repurposed – not just in Bath, but other city centres too – will determine how city centres are used. We’re going to see far more of a community feel around the high street again rather than a shopping and retail feel. Bath will be absolutely primed for that.” Rangecroft: “There is a real sense of opportunity and a desire to create genuine civic pride in the city and for the business community and universities to collaborate to make Bath an even better place to live and work.” Hiatt: “I hope that Bath continues to invest in entrepreneurs through university funding, small business-friendly incentives and regulations as well as cultural celebration of this innovative spirit. These investments will ensure Bath's place on the global map.”
“Bath Rugby Club has, for many years, been seeking to re-develop its stadium in the centre of the city. After a long process of March - April 2020
The rise and rise of recruitment companies How the office experience attracts and retains the best talent The recruitment sector is booming Despite uncertain times, skills shortages and rising employment, here’s an industry that continues to adapt and grow. Of course, a key factor in the ascent of recruiters is how the industry has embraced its technological revolution, exploiting the digital marketplace to their benefit. Yet, naturally, with growth comes competition. Match this with the continuing skills shortage that sees recruiters chasing the same top candidates, and it becomes imperative to standout in a busy market. Differentiation – why choose us? – becomes all-important to success. Talent attracts talent Building strong client and candidate relations starts and ends with a talented team. But how do you attract and retain the very best employees? Offer an innovative, progressive and life-enhancing workspace that will inspire your team to do well and feel part of the company culture and values. Who in turn will attract the best candidates and keep growing your client base.
Marc Hughes, Group Operations Manager, at Rethink Group, agrees, A company’s brand is sometimes common to the individual and the individual service. Brand is key and sometimes your client might follow the individual, so you have to provide a reason to make them stay.
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The experience factor
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So why should top talent choose to work and stay with you? Start by thinking about what it is your existing and future employees want from their professional life. We’re increasingly making our choices based on a professional experience that will enhance our lives. An office that meets individual needs, that inspires and supports, excites and fulfils – is exactly that. Transforming space to fit the talent you want Let’s face it. The workplace is where most of us spend the majority of our time outside the home. Which is why it plays a pivotal role in creating a healthy, happy, and fruitful employee experience. So, in an industry that’s all about people, make human interaction and working styles your focus. Place wellbeing, collaboration and inspiration at the centre of any redesign. Visualise a holistic
space that matches business needs alongside individual desires. A space that satisfies a range of requirements – that seamless, strategic circle of candidate, employee, client. When Marc Hughes, at Rethink Group, was considering the workplace redesign of their UK and International offices, it was important to consider the rising demands for flexibility, technology and home comforts, We have large and very comfy sofas which feels like a workspace bar environment. It entices our employees not to be in a rush to leave. It’s home comforts in an office. It’s been a key decision factor for people to come and work with us. By having that relaxed environment, we’ve increased our traffic into the office. Before, it would be mainly employees. Now we have clients and candidates through the door, week in and week out.
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Pride and fulfilment in a workplace will reflect itself in client handling. It will engender a strong sense of aspiration, achievement, and loyalty to your company. Employees will feel valued, inspired and supported. And the subsequent increase in attraction and retention of talent will mean you’ll soon see a return on your investment. Do you want to attract and retain the very best talent? Talk to the experts...
Creative workplace design and build experts. 01225 485 600 | www.interaction.uk.com Business Leader - Inspire • Inform • Connect
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REGIONAL SPOTLIGHT
ADVERTORIAL
Improving scientific communication around the globe
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ath-based entrepreneur Arif Butt is a man on a mission — to improve communication in science globally and make the future healthier. Inspired by a personal family experience, he and wife Louise launched online science publisher SelectScience in 1998 to give scientists access to vital information to accelerate their research. 22 years on, it’s really come of age. BLM learns more…
SelectScience is a unique business. Tell us in a nutshell what it does. SelectScience is an independent digital publisher that provides cutting-edge science technology and research news to a global audience of more than three million scientists. We provide trusted content and genuine peer-to-peer product reviews, to help scientists make well-informed buying decisions to accelerate their research. We’re passionate about promoting scientists and their work, enabling online conversations and providing a platform for scientists to share their expertise. In effect, we digitalise and amplify word-of-mouth for scientists on a global scale. What inspired you and your wife Louise to start the company 22 years ago? One of our children was sick and we were struggling to get a diagnosis and help. Then we were introduced to the internet and instantly realised it was the future — the internet was empowering us to get information we couldn’t get from other sources. SelectScience won a Queen’s Awards in 2013 – what did Her Majesty have to say? The Queen’s words were incisive and served to inspire us further in our mission to help scientists communicate more effectively, both with each other and to society. Why is it so important to give scientists a stronger voice? In a world of fake news, people are 76
The SelectScience Team
searching for the truth. By their nature, scientists are analytical people, and they’d rather take the word of another scientist. A poor purchasing decision could set research back months, if not years, so scientists need access to information they can trust — that’s why effective peer-to-peer communication is critical. So, what’s The Scientists’ Channel? The Scientists’ Channel is a video platform we launched two years ago to enable leading scientists and medical influencers to share their work and innovations online, in a trusted and moderated way. SelectScience has undergone rapid growth recently and just had a record-breaking year for new members, reviews and sales. Why? I think it’s a combination of things. For any business, it takes time to refine your offering, but it feels as though we’ve come of age. We have a talented young team based in Bath – with a mixture of strong science, marketing, editorial and IT skills – working in tandem with an expert international sales team. The culture is right: everyone works for each other. And it’s that great trust we’ve built up with both scientists and manufacturers. For example, they know every review we publish
has been fully moderated by our team of scientific editors. What are the biggest challenges you’ve faced along the way? At times, it’s felt as though we’ve been too far ahead of the curve. The science industry is quite conservative, so it’s taken time to bring change, eg in the value of word of mouth over traditional advertising. Working with early adopters to educate the majority is key to advance scientific research and, ultimately, make the world a healthier place. What do you look for when recruiting and how do you keep young talent engaged? It’s all about offering opportunities – and we do that in spades. Careers with SelectScience are what people want them to be – you forge your own path and the possibilities are limitless. How will SelectScience stay number one in future? It’s simple: working with staff, scientists and manufacturers who want to be first and understanding what they need to be more effective in reaching their goals. The Scientists’ Channel is doing just that.
www.selectscience.net www.thescientistschannel.com March - April 2020
Collaborate with us Explore how the University can help your organisation address its challenges, make a social impact and achieve competitive advantage. Collaborate with us through the following: Employer Training & Continuous Professional Development
Student Engagement, Employability & Recruitment
Enterprise & Innovation
Degree Apprenticeships
Research Partnerships
Bringing industry, academia and government together. businessatbath.com
REGIONAL SPOTLIGHT
BATH
SETsquared Bristol celebrates record £58m turnover
Partnering with the University of Bath Stephen Rangecroft, Director of Corporate Engagement, University of Bath: “Bath is a city open for business, with a thriving commercial heart and a unique culture of innovation and design. It has strong roots as a cultural centre for the creative arts including theatre, design and publishing, but is now growing a reputation for high-tech start-ups and software development companies. There is also a strong design and engineering capability within the city which reflects the origins of the university back in the late 1960s. “The city is famous for its Roman Baths, Georgian architecture and numerous listed buildings. But our challenge for the future is in embracing our heritage whilst developing a sustainable, modern infrastructure which will enable the city to flourish and support businesses to prosper and grow. "In order to help drive such an initiative, the University of Bath and the local Bath and North East Somerset Council have embarked on an ambitious 2030 strategy to embrace local decarbonisation and digitalisation.
SETsquared Bristol has announced its 80plus tech start-up and scale-up members have collectively achieved record turnover revenues exceeding £58m in 2019.
“BMT are a global design and engineering consultancy and one of the largest private sector employers based in the city. They are one of many organisations who have chosen to partner with the University of Bath and to collaborate across research and teaching. “This mutually beneficial relationship creates student work placements, graduate jobs, research projects and executive development opportunities.” Mark Sullivan, Operations and Capability Director at BMT sums it up: “It’s an absolute pleasure to collaborate with the corporate engagement team at the University of Bath.
The University of Bristol-led incubator provides expertise, business support and a caring, connected community for its resident and virtual members. Its programme includes coaching, mentoring, workshops, events, business review panels and investment readiness training. Its investment training has seen strong results in 2019. In total, 33 members secured funding, raising a total of £64m, which has converted into real economic impact evident in last year’s record amount of turnover revenue.
“By forging an effective relationship, we have had the opportunity to add considerable local value, and to share insights and ideas across a wide spectrum of contemporary challenges from artificial intelligence to future propulsion techniques.
Interim Centre Director, Steve Edwards, said: “2019 was a great year for SETsquared Bristol and its members, as well as the wider ecosystem. We’ve seen more investment into the area’s rich and diverse tech start-up scene and even more impressive turnover revenues from our members.
“The university’s broad skillsets both match and complement our own capabilities in different areas, allowing us to develop new services and expertise.”
"We look forward to evolving the incubator’s programme and expanding on our inclusivity projects over the year ahead.”
Telephone: +44 (0)1225 386643 Email: S.Rangecroft@bath.ac.uk
www.bath.ac.uk 78
In addition, its members, across 27 sectors, created 240 new jobs in the city region last year.
SETsquared Bristol’s commitment to supporting inclusive growth has resulted in an increase in women tech founders/CEO members by 17% and BAME founders/ CEOs by 14%.
March - April 2020
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REGIONAL SPOTLIGHT
BATH
BATH: FIVE OF THE BEST
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he city of Bath is a hotbed of business innovation and creativity, with excellence on offer in a diverse range of sectors. Today, Business Leader turns the spotlight on five of the city’s top companies to explore what it is that makes them unique.
Privately owned and ‘proudly independent’, AgencyUK is established as one of the nation’s most respect integrated brand communications specialists. The firm’s 30-strong team excels at taking challenger brands into number one spot, working ‘with clients we believe in’ to help them grow and connect with their audiences. Collaborative working and ‘boundless thinking’ are cornerstones of the Agency UK ethos. Agency UK says: “Importantly, we keep it real. We’re a genuine bunch, building open, honest and enduring relationships that deliver tangible results.”
Established in 2006, 1pm is an independent financial services provider for the SME sector which operates on its four pillar values of fairness, flexibility, trust and a personal touch. This is achieved through expert staff, an impressive product portfolio, a ‘vast’ industry knowledge, and the strong relationships the 1pm team builds with clients. 1pm says: “We take time to understand our customer requirements; we learn 80
and respect what is important to them and deliver a solution that works for their business. “Our profitability is a result of long-term relationships rather than quick wins.”
Operating at the cutting edge of technology and innovation, SelectScience unites the global science community, communicating with more than three million scientists a month. The online publisher offers a platform for scientists to share news and updates on their work, and link to manufacturers of vital kit, helping its users to further advance vital research. Headquartered in Bath, but with offices in Germany, Italy and the USA, SelectScience describes its purpose as ‘working with scientists to make the future healthier’.
Footdown is a company on a mission to ‘revolutionise the management consulting industry’. Home to a team of ‘courageous trailblazers’, Footdown is dedicated to helping business leaders and people management teams
improve performance within their organisations. In an effort to make world-class consulting widely available and affordable, Footdown has created the world’s first consulting automation platform. It says: “In our future, today’s leaders will be able to access reliable information, realtime intelligence and actionable insights faster and more cost-effectively than ever before.”
“The most successful projects are the product of perfect collaborations,” according to renowned office design firm Interaction. The firm runs on the ethos that mutual respect and integration from every part of the project chain are essential to its success, and says every member of its team – from graduates to directors – buys into that belief. Founded in 1992, and boasting a portfolio of success ranging from bespoke interior fitouts to multi-million-pound refurbishments, Interaction says: “Our philosophy is simply: great workspaces make for great workplaces.” March - April 2020
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To find out more about this one day summit or book your tickets call 020 3096 0020 or email editor@businessleader.co.uk
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